Conforming loans are mortgage loans that meet the specific criteria and guidelines set by a government-sponsored enterprise (GSE), such as Fannie Mae or Freddie Mac, and the Federal Housing Finance Agency (FHFA). These loans conform to the FHFA's standards regarding loan size, credit score, debt-to-income ratio, and other factors and are generally considered safe investments for lenders. As a result, conforming loans are widely available and popular among borrowers who want to secure a mortgage with more favorable terms and interest rates.
Conforming loans offer several advantages for borrowers:
Wider availability: Conforming loans are widely available as they meet the guidelines set by Fannie Mae and Freddie Mac, which makes them easier to obtain compared to other types of loans.
Lower interest rates: Due to their lower risk to lenders, conforming loans often come with lower interest rates compared to other types of loans.
Flexible terms: Conforming loans offer a range of terms, including fixed-rate and adjustable-rate options, allowing borrowers to choose a mortgage that best fits their financial situation.
Stricter underwriting standards: The strict underwriting criteria for conforming loans ensure that borrowers meet certain financial requirements, which can help them secure a mortgage and avoid default.
Easier to sell: Conforming loans are easier to sell on the secondary mortgage market, which means that lenders can more easily manage their risk and provide better mortgage products to borrowers.
Overall, conforming loans offer borrowers a secure, flexible, and affordable option for financing their home purchase.
There are several benefits of working with a professional when applying for a conforming loan:
Expertise: A professional loan officer has the expertise and experience to guide you through the mortgage process and help you understand the different options available to you.
Access to a wider range of products: A professional loan officer has access to a wider range of loan products and can match you with the best option based on your specific financial situation and goals.
Faster processing time: A professional loan officer has the knowledge and resources to streamline the loan application process and ensure that your loan is processed as quickly and efficiently as possible.
Personalized attention: A professional loan officer will work with you one-on-one to understand your needs and provide personalized support throughout the mortgage process.
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.