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Jumbo Loans And Conforming Loans: What's The Difference?

Every year, the Federal Housing Finance Agency (FHFA) sets guidelines for loan limits. Loans that meet the FHFA's requirements are eligible for purchase by government-sponsored investors such as Fannie Mae and Freddie Mac. Read on for definitions of mortgages that meet the FHFA's guidelines and those that don't.

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Conforming Loan and Jumbo Loan Definitions

Conforming Loan

A conforming loan is a conventional loan that meets the loan limit guidelines set by the FHFA.

The 2021 loan limit for a one-unit property in most of the country is $548,250. In many high-cost areas, such as San Francisco, New York City, Alaska and Hawaii, the 2021 loan limit for a one-unit property is higher, at $822,375.

Jumbo Loan

Non-conforming loans, or jumbo loans, are mortgages larger than the limit set every year by the FHFA.

Our jumbo loan, called Jumbo Smart, lets borrowers finance up to $2.5 million when they buy or refinance a home.

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Conforming Loan Image

Jumbo Loans And Conforming Loans: What's The Difference?

Every year, the Federal Housing Finance Agency (FHFA) sets guidelines for loan limits. Loans that meet the FHFA's requirements are eligible for purchase by government-sponsored investors such as Fannie Mae and Freddie Mac. Read on for definitions of mortgages that meet the FHFA's guidelines and those that don't.

Conforming Loan and Jumbo Loan Definitions

Conforming Loan

A conforming loan is a conventional loan that meets the loan limit guidelines set by the FHFA.

The 2021 loan limit for a one-unit property in most of the country is $548,250. In many high-cost areas, such as San Francisco, New York City, Alaska and Hawaii, the 2021 loan limit for a one-unit property is higher, at $822,375.

Jumbo Loan

Non-conforming loans, or jumbo loans, are mortgages larger than the limit set every year by the FHFA.

Our jumbo loan, called Jumbo Smart, lets borrowers finance up to $2 million when they buy or refinance a home.

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