Also known as Conventional Loans.

Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year. The 2005 conforming loan limits for first mortgages are:

The maximum amounts for one-to-four-family mortgages and second mortgages in Alaska, Hawaii, Guam and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country. Properties with five or more units are considered commercial properties and are handled under different rules.

The 2005 loan limit for second mortgages is $179,825.

Most loans Fannie Mae purchases are well below the conforming limit. Our average loan size for single-family properties in 2004 is about $160,000.

• Conforming Loans
• Non-Conforming Loans
• FHA/VA Loans
• Subprime Loans
• Jumbo Loans
• Home Construction Loans
• Home Equity Loans
• 100% Financing Loans
• Refinancing Loans
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