Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, from October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.
Buying back mortgage loans allows these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market — effectively decreasing the demand for non-conforming loans.
Conforming loan limits:
Number of units | Maximum original principal balance | Alaska, Guam, Hawaii, and U.S. Virgin Islands only |
1 | $417,000 | $625,500 |
2 | $533,850 | $800,775 |
3 | $645,300 | $967,950 |
4 | $801,950 | $1,202,925 |
NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher.
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We’re a family-owned and -operated company
based out of the St. Croix Valley and serving the Twin Cities metropolitan area and western Wisconsin. J.G. Hause was founded in 1990 and has grown slowly and steadily to become an industry leader with a strong reputation for integrity, quality and service. We pride ourselves on our customer satisfaction. Many of our projects are the direct result of referrals from past satisfied customers, and that speaks volumes. We’ll be here for you when you need us, and our quality and value will remain long after your project has been completed. Put our experienced team to work for your next project today!