Conforming Loans

Conforming Loans

What are Conforming Loans?

kara-eads-L7EwHkq1B2s-unsplash (1)Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae and Freddie Mac. Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price. Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans.

Conforming Loan Limits for 2023

Number of Units The maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only
1 $726,200 $1,089,300
2 $929,950 $1,394,775
3 $1,123,900 $1,685,850
4 $1,396,800 $2,095,200

NOTE: Generally the debt to income ration can’t exceed 45% on this product, but with a strong borrower profile can go up to 49.99 with strong credit and reserves.

Get started and get pre-approved today!

start button


Follow CM Mortgage Services Inc.


Licensed by the Pennsylvania Department of Banking, NMLS #143821

Equal Housing Lender

Contact Us

CM Mortgage Services Inc.
1240 West Chester Pike
West Chester, PA 19382

(610) 430-6852