Finance
In Minnesota, a 'conforming loan' meets Fannie Mae and Freddie Mac standards including loan limits and underwriting guidelines. Conforming loans are attractive to borrowers because they typically offer:
AHigher interest rates than jumbo loans
BLower interest rates and more competitive terms because they can be sold to the secondary market✓ Correct
CNo income verification requirements
DGuaranteed approval for all applicants
Explanation
Conforming loans meet FHFA standards for purchase by Fannie Mae and Freddie Mac in the secondary market. Because lenders can sell these loans, they are willing to offer lower rates and more favorable terms.
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