A mortgage that conforms to statistical norms as far as loan amount The present cut-of for conforming loans is $300,700 00 This term is also used to denote an "A" paper loan as opposed to a "B" paper loan (good - excellent credit)
Conforming loans refer to loan amounts that conform to government service standards as determined by Fannie Mae & Freddie Mac (the original government agencies, set up in the early 1940's, established to help people finance new homes) Conforming loans range in amount form $1 to $227,150 Although not all conforming loans are serviced by these government agencies, the mortgage industry has adopted the term to express loan amounts in this range