Conforming Loan

Conforming refers to fitting inside the rules that let a loan be sold to Fannie Mae or Freddie Mac, including a maximum loan amount that updates each year and can be higher in pricey areas. Because these loans are easy for lenders to sell, they often come with competitive pricing and widely available terms.

If you need to borrow more than the conforming limit, you’d typically look at a jumbo loan, which has its own guidelines and often stricter requirements for credit and reserves. Knowing which side of the limit you’re on helps set expectations early, and I can tell you where the limit sits in your area.