Finance
The maximum conforming loan limit set by the FHFA determines:
AThe maximum amount a borrower can receive from an FHA loan
BThe maximum loan size that Fannie Mae and Freddie Mac will purchase✓ Correct
CThe maximum interest rate a lender can charge
DThe maximum amount a seller can contribute toward closing costs
Explanation
The FHFA sets conforming loan limits annually. Loans at or below these limits can be sold to Fannie Mae or Freddie Mac on the secondary market. Loans exceeding these limits are 'jumbo' loans with different qualification standards.
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