Finance
A conforming loan is one that:
AMeets the underwriting standards and loan limits set by Fannie Mae and Freddie Mac✓ Correct
BIs backed by the federal government
CRequires a minimum 20% down payment
DHas a fixed interest rate
Explanation
A conforming loan meets Fannie Mae and Freddie Mac's underwriting guidelines and loan limits, making it eligible for purchase in the secondary market. Loans exceeding the limits are called jumbo (non-conforming) loans.
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