Conforming loans
Loans that adhere to the guidelines set forth by Fannie Mae (from FNMA: Federal National Mortgage Association) and Freddie Mac (from FHLMC: Federal Home Lone Mortgage Corp ) , two corporations that purchase, package and sell loans that meet their conditions as securities to investors. These are referred to as “A” paper loans. Conforming loans must meet certain guidelines regarding down payment, loan limits, borrower qualifying criteria and appropriate properties.
