What is a conforming loan?

A conforming loan meets the guidelines set by Fannie Mae and Freddie Mac, including loan size limits, credit requirements, and down payment minimums. For 2024, the conforming loan limit is $766,550 for a single-family home in most areas (higher in high-cost regions). Because conforming loans can be sold to Fannie Mae and Freddie Mac, lenders can offer them at lower interest rates. Loans above the conforming limit are called jumbo loans and typically carry higher rates and stricter qualification requirements. Most conventional mortgages are conforming loans.