Conforming mortgage loans

Conforming mortgage loans are contracts that are purchased by Fannie Mae and Freddie Mac from lenders. Fannie Mae and Freddie Mac convert them into securities and sell them to investors. These two private corporations have particular criteria in order to agree to a mortgage loan for an individual. One is a limit on indebtedness, which is currently at just over $300,000. But this limit changes annually. Individuals cannot obtain a contract that exceeds this limit. Eligibility is also determined by credit history, income, and employment status.