Finance
A 'conforming loan' is one that:
AConforms to FHA lending guidelines
BMeets the standards set by Fannie Mae and Freddie Mac for purchase in the secondary market✓ Correct
CIs guaranteed by the VA
DHas an interest rate that conforms to the prime rate
Explanation
A conforming loan meets the underwriting guidelines and loan limits established by Fannie Mae and Freddie Mac, making it eligible for purchase in the secondary mortgage market.
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