Conforming Home Loan is a mortgage loan that conforms to Government Sponsored Enterprise guidelines. Fannie Mae and Freddie Mac worked together to develop national standards for loans, these loan must meet certain criteria. Debt to income ratio, maximum loan limitations and documentation requirements set by the Office of Federal Housing Enterprise Oversight.

Currently conforming loans require a minimum score of 620. However some lenders have already increased this to 680. In 2009 the National Average for Credit Scores, a survey conducted by Experian, was 692. Many lenders also require borrowers to have a debt to income ratio of less than 45% and this may vary slightly from lender to lender.

An other requirement to consider for a conforming loan is Private Mortgage Insurance. For those willing to put a 20% down payment this would not be required. Also, maximum loan limits have been temporary changed due to the economic stimulus package of 2008. A single family residences can not exceed 125% or $729,750 of the median home value with the metropolitan statistical area.

Contact a qualified Loan Officer today to compare mortgage loan types. We will be happy to conduct the search and inform you on your best loan options

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