This is the most common, most used, most popular type loan program available to consumers. When you hear the term “conforming loan”, this simply implies two things about a loan: First, that the maximum loan size is determined by the Federal Housing Finance Agency (FHFA) It will change every year but as of 2022 the maximum amount is $647,200. And Second, that the loan has been originated in a manner that makes it eligible for sale to one of the two Government Service Entities (GSE’s) commonly called Freddie Mac and Fannie Mae. The conforming loan minimum down payments can go as low as 3%. However, the more common loan programs will start at minimums of 5% down payment. This product is available for both Primary residences and Residential Investment properties(up to 4 units) as well as owner occupied second homes (Mainly vacation homes).
This is the single most common loan type you will find. It can come in amortizations of up to 30 years and is found in both Fixed and adjustable rate products. While there are a few notice-able differences between the two GSE’s, generally they offer the same product lines with very subtle underwriter tweaks that may some times favor your particular situation.