Finance
A conforming loan in Tennessee is one that:
AIs insured by the FHA or guaranteed by the VA
BMeets the underwriting standards and loan limits set by Fannie Mae or Freddie Mac✓ Correct
CDoes not exceed $250,000 in loan amount
DIs originated by a Tennessee state-chartered bank
Explanation
Conforming loans meet the guidelines (loan limits, credit standards, underwriting requirements) set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). These loans can be sold in the secondary market. Loans exceeding the conforming limit are called jumbo loans.
Related Tennessee Finance Questions
- A home equity line of credit (HELOC) differs from a home equity loan in that a HELOC:
- A 'points' buy-down in a mortgage means the borrower pays upfront to:
- A reverse mortgage allows a homeowner to:
- A Tennessee buyer uses an FHA loan with a 3.5% down payment on a $220,000 home. What is the down payment amount?
- A mortgage assumption allows a buyer to:
- The Federal Reserve's primary tool for influencing mortgage interest rates is:
- Private Mortgage Insurance (PMI) is typically required when:
- A purchase-money mortgage is one in which:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →