- Conforming Conventional Loans: Often known as the “plain vanilla” loans conforming conventional loans are defined both by the max loan limits (as noted below) and they are sold to Fannie Mae or
Freddie Mac.
As a trusted local mortgage lender I can assist you in navigating your loan options. If a conventional loans doesn’t quite work I have many alternative lending options to discuss. In addition to the loan amount your credit scores, property value and level of income documentation may impact what is the correct choice for your specific situation.
- Both of these Government controlled 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. The loan amounts are set by the Geographic location for conventional loansBuying back mortgage loans from the originating lenders allow these lenders 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.
Conventional Loan Limits:
Number of Units Maximum original principal balance Eagle, Pitkin, Summit
& Routt Counties1 647,700 862,500 2 828,700 1,104,150 3 1,0650, $1,334,700 4 $1,244,850 $1,658,700 These materials are not from HID or FHA and were not approved by HUD or a Government agency
