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.
Fannie Mae (FNMA) is a government-sponsored enterprise (GSE) that backs and increases liquidity in the United States residential mortgage market by buying and guaranteeing mortgage loans.
Commonly known as Fannie Mae, FNMA is a government-sponsored enterprise that expands the secondary mortgage market by securitizing mortgage loans, thus providing lenders with liquidity and facilitating homeownership 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.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) that buys and sells existing residential mortgages, facilitating liquidity within the mortgage market and enabling more Americans to achieve homeownership.
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.
The secondary mortgage market involves mechanisms for buying and selling residential first mortgages. It enables lenders to sell mortgages and transfer the associated debt, thereby improving liquidity and fostering a more stable housing finance market.
