Conforming Loan Programs
Conforming Loans are mortgage loans that conform to government-sponsored enterprise (GSE) guidelines. The two most well-known GSEs are the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Currently, these enterprises hold or pool approximately $5 trillion worth of mortgages within the U.S.
Presently, GSEs primarily act as financial intermediaries to assist lenders and borrowers in housing and agriculture. Congress established these GSEs to improve the efficiency of capital markets and to overcome market imperfections which sometimes prevent funds from moving easily from suppliers of funds to areas of high loan demand. This is primarily done by a guarantee that limits the risk of capital losses.
Beginning in 1970, Fannie Mae was authorized by the government to purchase residential mortgage loans. Fannie Mae later worked with Freddie Mac to develop uniform mortgage documents and national standards for what would come to be known as a conforming loan.
Generally speaking, any loan that does not meet specific guidelines is a non-conforming loan while a loan that does not meet guidelines specifically because the loan amount exceeds the guideline limits is known as a jumbo loan. The Federal Housing Finance Agency (FHFA) publishes annual conforming loan limits which dictates which mortgages that both Fannie Mae and Freddie Mac can buy. Conforming Loans generally carry maximum amounts/limits.
Resolution Funding offers a number of conforming loan programs to choose from. Whether you’re looking for a 30-year fixed mortgage or a high balance adjustable rate mortgage, we can help you find the program that best fits your needs with very attractive rates and terms.
For help in finding the conforming loan program that’s right for you or to receive your customized quote, please contact us today. Feel free to complete our secure online application to get pre-approved!