A conforming loan is a mortgage that adheres to the guidelines set by government-sponsored entities Fannie Mae and Freddie Mac, including loan limits, borrower credit score, down payment, and debt-to-income ratio requirements.
The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a government-sponsored enterprise (GSE) that helps provide liquidity, stability, and affordability to the mortgage market in the United States.
A Federally Related Mortgage is a mortgage loan that is governed by federal laws and regulations due to involvement by federal agencies, ensuring compliance and protection for both lenders and borrowers.
Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise (GSE) that buys and securitizes mortgages to ensure a reliable and affordable supply of mortgage funds across the country.
A nonconforming loan is a loan that does not meet the standards of, or is too large to be purchased by, Fannie Mae (FNMA) or Freddie Mac (FHLMC).
A measure used by lenders to determine the maximum percentage of a borrower's income that can be allocated to debt payments and still qualify for a loan. This ratio helps assess the lender's risk exposure.
