Standard loan programs
Conforming Loan Limits
Conforming loan rates and terms
Conforming loans meet the standards set by Fannie Mae and Freddie Mac. These loans have consistent underwriting guidelines and predictable terms. We offer conforming mortgages in multiple configurations to match your financial situation.
Rates as of
| Loan type | Rate | APR |
|---|---|---|
| 30-year fixed conforming Standard 30-year amortization | 6.500% | 6.625% |
| 15-year fixed conforming Accelerated payoff option | 5.750% | 5.900% |
| Adjustable-rate conforming Initial fixed period, then adjustable | 6.250% | 7.125% |
Annual Percentage Rate calculations assume standard closing costs, a loan amount of $400,000, a 30-year term, and a primary residence with standard risk profile. Your actual APR may differ based on credit, property type, loan amount, and down payment.
Conforming loan limits are set annually by the Federal Housing Finance Agency. These limits apply to mortgages that can be purchased by Fannie Mae or Freddie Mac. Loans exceeding conforming limits are classified as jumbo mortgages and are subject to different terms and pricing. Contact us for current conforming limits in your area and how they affect your borrowing capacity. All rates subject to change without notice.
Conforming loans represent the backbone of the mortgage market. These mortgages adhere to guidelines established by Fannie Mae and Freddie Mac, which means they can be sold on the secondary market. That standardization creates efficiency and consistency in how we underwrite and price these loans.
When you get a conforming loan, you're getting a mortgage with clear terms, predictable costs, and straightforward approval standards. There's no guessing. No surprises buried in the fine print.
Conforming loans come with limits on the amount you can borrow. The Federal Housing Finance Agency updates these limits annually. Most borrowers fit comfortably within conforming limits. If you need to borrow more, we offer jumbo programs that follow their own guidelines.
We service conforming loans for the long haul. That means you work with us from application through closing and beyond. We handle your servicing in-house, so questions go to people who know your file.
Conforming loan details
Locked rates for the life of your loan
A fixed-rate conforming loan carries the same interest rate from day one through final payment. Your principal and interest payment stays constant. You always know what you owe.
Fixed-rate loans work well if you plan to stay in your home long-term or if rising rates concern you. You're protected against rate increases. The tradeoff is that fixed rates start higher than adjustable rates, but you get certainty.
Fixed conforming loans come in standard terms. The 30-year term is most common and spreads payments over three decades. A 15-year term builds equity faster and costs less in total interest, but your monthly payment is higher. We also offer other terms between 10 and 30 years.
Lower initial rate, adjustment after fixed period
An adjustable-rate conforming loan starts with a fixed rate for an initial period, then adjusts periodically based on market conditions. The initial rate is typically lower than a fixed rate for the same term.
Adjustable-rate loans make sense if you plan to sell or refinance before the adjustment period begins. They also work if you expect your income to increase or your financial situation to strengthen.
When your loan adjusts, the new rate is based on an index plus a margin set at closing. Caps limit how much the rate can increase at each adjustment and over the life of the loan. We explain the adjustment schedule and caps clearly before you close.
How much you can borrow under conforming standards
Conforming loan limits vary by county and are adjusted annually. Most areas follow the standard conforming limit set by the Federal Housing Finance Agency. Higher-cost areas may have higher limits. Alaska, Hawaii, Guam, and the Virgin Islands have their own limits.
Your ability to borrow within conforming limits depends on your income, debt, credit, and down payment. Meeting conforming standards typically means meeting standard underwriting criteria. If your situation is straightforward, conforming loans move fast.
If you need to borrow more than the conforming limit for your area, jumbo loans are available. Jumbo loans follow different guidelines and have different pricing, but we handle them with the same professionalism and care as conforming mortgages.
Conforming loan questions
Get answers about how conforming mortgages work, what they cost, and whether they're right for you.
What's the difference between a conforming loan and a jumbo loan?
A conforming loan stays within the loan limits set by Fannie Mae and Freddie Mac. These loans can be sold on the secondary market, which creates standardized pricing and terms. A jumbo loan exceeds the conforming limit for your area. Jumbo loans follow different guidelines, typically require a larger down payment, and are priced differently because lenders keep them rather than selling them.
Can I pay off a conforming loan early?
Yes. You can pay down your principal at any time without penalty. Many borrowers make extra payments toward principal to pay off the loan faster. Some make bi-weekly payments instead of monthly payments, which results in one extra payment per year. We apply extra payments directly to principal unless you specify otherwise.
What happens when an adjustable-rate loan adjusts?
When your fixed period ends, the rate adjusts based on the index and margin disclosed at closing. The new rate is calculated and your payment changes. Caps limit how much the rate can increase. You'll receive notice of the new rate before it takes effect. Your payment will change, but the caps ensure you know the maximum possible increase.
Do I need perfect credit to qualify for a conforming loan?
No. Conforming loans work for borrowers with various credit profiles. We look at your whole financial picture, not just one number. Your credit score is one factor among many. Other factors include your income stability, debt-to-income ratio, down payment, and the property. Talk to us about your specific situation.
What costs are involved in a conforming loan?
Closing costs typically include appraisal, title search, underwriting, origination, and government recording fees. Some costs vary by location and lender. We provide a loan estimate within three business days of application that shows all estimated costs. You have the right to review this estimate and ask questions before closing.
Conforming loan specialists
Our team answers questions about conforming mortgages, loan limits, and qualification standards. Call, visit, or send a message.
Get in touch
- Phone (615) 555-0164
- Fax (615) 555-0147
- Email wizard-v2-msoogubv@example.test
Hours
- Monday to Friday 8:00 AM to 5:00 PM CT
- Saturday 9:00 AM to 2:00 PM CT
- Sunday Closed