What is the difference between conforming and non-conforming loan amounts?
The term “conforming,” as opposed to “non-conforming,” is used to classify loans that fall within the guidelines as set forth by Fannie Mae and Freddie Mac. These are the two private, congressionally chartered companies that buy mortgage loans from lenders, thereby ensuring that mortgage funds are available at all times in all locations around the country. These loans generally offer the most attractive rates. Conforming loan amounts are $417,000 and below. Non-conforming loan amounts are above $417,000. These loans are usually called a “JUMBO” loan.
