Conforming Loan

(insured by Fannie Mae/Freddie Mac)

Conforming Loans are loans that conform to GSE (aka Fannie Mae and Freddie Mac) guidelines. The Conforming loan limits for 2012 remain at previous set limits, $417,000 for a one family home. The maximum Loan to Value Ratio (loan amount divided by your home's value)is 97%. Private Mortgage Insurance and Escrow accounts will be required on loans with less than a 20% equity. Borrowers will be subject to Loan Level Price Adjustments (LLPAs), set by the GSEs, based on credit score and Loan to Value ratio (LTV).