Finance
What is a 'conforming loan'?
AA loan that conforms to the borrower's budget
BA loan that meets the purchase guidelines of Fannie Mae and Freddie Mac, including loan amount limits✓ Correct
CA loan approved by the FHA
DA loan with no prepayment penalty
Explanation
A conforming loan meets the underwriting standards and loan limits set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These loans can be sold on the secondary mortgage market. Loans exceeding the conforming loan limit are called jumbo loans.
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