Conforming mortgages in Delaware
Do you know the difference between a non-conforming mortgage and a confirming one? You should because that knowledge might save you some money. Here’s what’s important to know. Fannie Mae and Freddie Mac are the two federally chartered agencies tasked with the responsibility of providing liquidity to the mortgage industry in the U.S. The primary purpose of this liquidity is to make the goal of homeownership a reality for families with low to middle incomes. Note that these agencies do not support non-conforming mortgages and therefore, rates are higher. Conforming criteria including minimal documentation, a maximum loan amount, and a high debt-to-income ratio help ensure that families in this income group benefit from the activities of both Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO) reviews and resets as necessary the max loan amount each year. Loans over and above the maximum are referred to as “jumbo” mortgages.
