Finance
In South Dakota, which of the following is a 'conforming loan'?
AAny loan that conforms to state banking regulations
BA conventional mortgage that meets Fannie Mae/Freddie Mac's size and underwriting guidelines for purchase on the secondary market✓ Correct
CA government-backed FHA or VA loan
DA loan that conforms to the borrower's credit standards
Explanation
A conforming loan is a conventional mortgage that meets the size (loan limit) and underwriting standards (credit score, DTI, LTV) set by Fannie Mae and Freddie Mac, making the loan eligible for purchase on the secondary market. Non-conforming loans (jumbo loans) exceed these limits.
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