- 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. All year round, Fannie Mae and Freddie Mac are working for you, establishing limits on what constitutes a conforming loan in a mean home price.Buying back mortgage loans allows these agencies to provide a continuous flow of affordable funding to banks that reinvest money back into additional mortgage loans. Fannie Mae and Freddie Mac exclusively buy loans that are conforming, to repackage into the secondary market and effectively decreasing the demand for non-conforming loans.
*General Conforming Loan Limits:
Number of Units Maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only 1 $453,100 $679,650 2 $580,150 $870,225 3 $701,250 $1,051,875 4 $871,450 $1,307,175
Maximum Loan Amount for High-Cost Areas for 2018
Number of Units Maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only 1 $679,650 $1,019,475 2 $870,225 $1,305,325 3 $1,051,875 $1,577,800 4 $1,307,175 $1,960,750
All you really need to understand is that the best fixed rates your will receive on a mortgage loan, come from Conforming Loans! If you have good credit scores, income and assets, then this is most likely where we will place your loan. Fannie Mae and Freddie Mac provide, again, as a general rule, the lowest fixed rates available to homeowners with the lowest loan costs as well. The reason is simple. Fannie and Freddie want the best home loans for their portfolio so they can sell, with confidence, their mortgage backed securities on Wall Street. After just a few questions, I will be able to tell you whether you fit in this category.
Call Michael Mitchell, 530-406-2200 or 707-259-1117 or 707-337-5970 mobile.