Finance
A 'conforming loan' is a mortgage that:
AConforms to FHA insurance requirements
BMeets Fannie Mae/Freddie Mac guidelines, including loan limits✓ Correct
CIs made by a federally chartered bank
DHas a fixed interest rate
Explanation
A conforming loan meets the standards set by Fannie Mae and Freddie Mac for purchase, including loan size limits (set annually by FHFA), borrower credit requirements, and underwriting guidelines. Loans exceeding the limit are 'jumbo' loans.
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