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Loan Limits on Conforming Mortgages Going Up in 2021

Loan Limits on Conforming Mortgages Going Up in 2021

When you apply for a mortgage to buy a home, your loan is classified by your lender as either a "conforming loan" or a "jumbo loan." The two GSEs guarantee that they will buy "conforming loans" -- but not jumbo loans. This means banks are more eager to work with loans below Fannie and Freddie's limits, since they know there's a buyer for the loan, and they won't have to keep it on their own books.