Conforming Loans
What are conforming loans? Simply put they are home loans that adhere to the limits set by both Freddie Mac and Fannie Mae. These two companies work with the government to set loan limits each year. The Office of Federal Housing Enterprise Oversight or OFHEO oversees these companies to insure that the loans reflect the current market. The loans are the same state to state except for higher living areas such as Guam, Hawaii, Alaska and US Virgin Islands.
This in turn allows middle class American to buy homes at affordable rates. It also keeps a continual flow of loans into the economy which gives more mortgage loans to those who are interested.
In addition to setting the maximum limit on how much one can borrow on a conforming loan, there are other limits set. Borrower credit, income requirements, down payments and suitable properties are also considered in conforming loans. This helps to protect the buyer and his investment. It also helps protect the buyer from getting into a mortgage loan that he or she may not be able to fulfill.
We at HomeLoanToolBox.com are trained and qualified to help you with conformed loans. Let us answer any questions you may have about your next mortgage loan.
This in turn allows middle class American to buy homes at affordable rates. It also keeps a continual flow of loans into the economy which gives more mortgage loans to those who are interested.
In addition to setting the maximum limit on how much one can borrow on a conforming loan, there are other limits set. Borrower credit, income requirements, down payments and suitable properties are also considered in conforming loans. This helps to protect the buyer and his investment. It also helps protect the buyer from getting into a mortgage loan that he or she may not be able to fulfill.
We at HomeLoanToolBox.com are trained and qualified to help you with conformed loans. Let us answer any questions you may have about your next mortgage loan.