Finance

In South Dakota, a 'conforming' loan limit (as set by FHFA annually) refers to:

AThe minimum loan amount eligible for FHA insurance
BThe maximum loan amount eligible for purchase by Fannie Mae and Freddie Mac✓ Correct
CThe maximum interest rate allowed on conventional mortgages
DThe minimum down payment required for conventional loans

Explanation

The conforming loan limit (set annually by the Federal Housing Finance Agency) is the maximum loan amount eligible for purchase by Fannie Mae and Freddie Mac. Loans above this limit are 'jumbo' loans. The limit is the same for most of South Dakota as the national baseline.

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