The term “conforming” is often used to describe the mortgage amount, under a certain dollar figure, or loan limit, set each year by the FHFA. For 2024, this baseline limit is $766,550 for most of the United States. In some high-cost markets, such as San Francisco and New York City...
AnFHA-backed mortgage, for example, the lender is made whole if the borrower defaults on the loan. On the other hand, Fannie Mae buys conventional mortgages that conform to its lending requirements, hence the terms “conforming” and “non-conforming” mortgages. The guarantee is not to the ...