Conventional Loans

Conforming Loans:

           Often known as the "plain vanilla" loan Conforming loans are defined both 
           by the max loan limits (as noted below) and they are sold to Fannie Mae or
           Freddie Mac.

Both of these Government controlled stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price.  The loan amounts are set by the Geographic location.

Buying back mortgage loans from the originating lenders allow these lenders to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market - effectively decreasing the demand for non-conforming loans.

Conforming Loan Limits:

Number of Units Maximum original principal balance Eagle, Pitkin, Summit
& Routt Counties
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925

These materials are not from HID or FHA and were not approved by HUD or a Government agency


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