Finance
In Texas, a 'conforming loan' is one that meets the loan limits and underwriting guidelines established by:
AThe Texas Real Estate Commission
BFannie Mae and Freddie Mac, making the loan eligible for purchase on the secondary market✓ Correct
CThe Texas Department of Banking
DTDHCA
Explanation
A conforming loan meets the loan limits and underwriting standards set by Fannie Mae and Freddie Mac. These standards include maximum loan amounts (which vary by county), minimum credit scores, maximum DTI ratios, and other requirements. Loans that conform can be sold on the secondary market, providing lenders with liquidity to make more loans.
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