What is a Conforming loan?
A Conforming loan is a non-government loan that meets requirements set by the Federal Housing Finance Agency (FHFA) and meets the funding criteria of Freddie Mac and Fannie Mae. Conforming loans offer low interest rates to borrowers with excellent credit scores.
Competitive rates and countless options
Homebuyers seeking a Conforming loan typically enjoy the largest selection of loan options at the most competitive rates. Since risks and guidelines are well-defined, Conforming loans are popular with both mortgage lenders and homebuyers. Most lenders will offer several different programs tailored to different homebuyer situations, which means you can shop for the most competitive rates and terms to maximize how much you can get from a loan.
Who should get one:
- Homebuyers with good credit (scores as low as 620) and a qualifying debt-to-income ratio
- Homebuyers who do not need to borrow more than their county loan limits
- Both fixed- and adjustable-rate options available
- Financing up to 97% of the purchase price (up to 95% with conforming high-balance)
- Loan amount may not exceed county loan limits (varies on a county-by-county level)
If you don’t qualify for a Conventional loan:
Conforming loans are popular because they have such clearly defined guidelines. For anyone who doesn’t meet those guidelines, Guild has other options like FHA loans or Expanded (Non-QM) loans to help you qualify for the property you love.
All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.