Conforming loan

Definition

A conforming loan is a mortgage that meets Fannie Mae or Freddie Mac purchase standards, including the size limit those enterprises and their regulator set. It is not a synonym for a conventional loan.

In plain English

Fannie Mae and Freddie Mac buy many mortgages, but only if the loan fits their published rules. Size is one of those rules. A loan above the applicable size limit is often called jumbo. Conventional loans are loans that are not FHA, VA, or USDA loans. A conventional loan can be conforming or not. This page does not publish a current dollar limit.

Technical definition

CFPB’s jumbo-loan heading explains that FHFA, Fannie Mae, and Freddie Mac set a maximum amount the enterprises will buy. That ceiling is the conforming-size idea. Current dollars belong to FHFA, not this page.

Why it matters

Product labels and rate quotes often assume conforming size. Mixing conforming with conventional hides government-insured loans and jumbo conventional loans.

Commonly confused with

Sources reviewed

Important note

This page does not state the current conforming loan limit. That figure is set by official sources and can change.