| Conforming Loans
Conforming loans have terms and conditions that follow the
guidelines set forth by Fannie Mae and Freddie Mac. These
two stockholder-owned corporations purchase mortgage loans
complying with the guidelines from mortgage lending institutions,
packages the mortgages into securities and sell the securities
to investors. By doing so, Fannie Mae and Freddie Mac, like
Ginnie Mae, provide a continuous flow of affordable funds
for home financing that result in the availability of mortgage
credit for Americans.
Fannie Mae and Freddie Mac guidelines establish the maximum
loan amount, borrower credit and income requirements, down
payment, and suitable properties. Fannie Mae and Freddie Mac
announce new loan limits every year. One- to four- family
mortgage loan limits effective January 1, 2007:
First mortgages
- One-Family $417,000
- Two-Family $533,850
- Three-Family $645,300
- Four-Family $801,950
Note: One- to four- family mortgages in Alaska,
Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher
than the limits for the rest of the country. NH loan limits
comply normally with the rest of the country.
Second mortgages
- $208,500
- In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750
Properties with five or more units are considered commercial
properties and are handled under different rules.
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