Finance
What is a 'conforming loan'?
AA loan that conforms to FHA guidelines
BA conventional loan that meets Fannie Mae and Freddie Mac's purchasing guidelines, including loan limits✓ Correct
CA loan with a fixed interest rate only
DA government-insured mortgage
Explanation
A conforming loan meets the criteria set by Fannie Mae and Freddie Mac — including loan limits, credit requirements, and underwriting standards — which makes it eligible for purchase in the secondary market. Loans exceeding the limits are called jumbo loans.
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