Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, from October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price. In Florida that is $424,100. Anything above that is considered a Jumbo Loan.
Conventional loans have several benefits over others types of loans such as FHA, including:
– No mortgage insurance required if loan-to-value is less than 80%
– If required, mortgage insurance ends once loan is paid to 78% of value
– May be used to purchase an investment property or second home
Contact us today and one of our Loan Professionals will help you find the loan product just right for your situation.