Finance
In Ohio, a 'conforming loan' is one that:
AMeets all Ohio state banking requirements
BMeets Fannie Mae or Freddie Mac standards for purchase, including loan limits and underwriting guidelines✓ Correct
CIs insured by the FHA
DHas a fixed interest rate for 30 years
Explanation
A conforming loan meets the guidelines established by Fannie Mae and Freddie Mac for purchase on the secondary market, including loan balance limits (the conforming loan limit), LTV ratios, and underwriting standards.
Related Ohio Finance Questions
- What is the primary purpose of private mortgage insurance (PMI) in Ohio conventional loans?
- What is the role of Ginnie Mae (GNMA) in the mortgage market?
- In Ohio, which of the following is an example of a 'hard money' loan?
- A 'construction loan' in Ohio is designed to:
- What is a portfolio loan in mortgage lending?
- What is the loan-to-value (LTV) ratio and why does it matter?
- Under Ohio law, how is a mortgage foreclosure typically carried out?
- What is a private placement mortgage in real estate?
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →