Conforming Loans
- Conforming Loans:
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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, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.
Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market - effectively decreasing the demand for non-conforming loans.
2011 Conforming Loan Limits:
Number of Units Maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only 1 $417,000 $625,500 2 $533,850 $800,775 3 $645,300 $967,950 4 $801,950 $1,202,925 NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher.
It would be our great pleasure to assist you. Please give us a call or apply on line. Daytime, evening and weekend appointments are available at your convenience. By the way, we have an A+ rating with the Better Business Bureau and we are licensed in Washington and Oregon.
We value your business and we earn your respect!
First Priority Financial
Residential Lending Specialists
1500 W 4th Avenue Suite 410
Spokane WA 99201
509-623-1623 ~~~ 800-617-3105
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