Finance
A conforming loan is one that:
AHas a fixed interest rate
BMeets Fannie Mae/Freddie Mac guidelines, including loan limits and underwriting standards✓ Correct
CIs insured by the FHA
DRequires a 20% down payment
Explanation
A conforming loan meets the underwriting standards and loan size limits established by Fannie Mae and Freddie Mac, making it eligible for purchase in the secondary market.
Related Indiana Finance Questions
- The Federal Reserve's monetary policy affects Indiana mortgage rates because:
- An Indiana buyer obtains an FHA loan with 3.5% down on a $280,000 home. What is the down payment amount?
- An interest-only mortgage requires the borrower to pay:
- After a judicial foreclosure sale in Indiana, the former homeowner may have a right to:
- Predatory lending practices that Indiana regulators watch for include all of the following EXCEPT:
- Indiana's secondary mortgage market participant Fannie Mae primarily:
- Indiana's usury laws regulate:
- Private mortgage insurance (PMI) is typically required when a conventional loan's loan-to-value ratio exceeds:
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →