A conforming mortgage is a type of home loan that meets the size and underwriting standards set by the Federal Housing Finance Agency (FHFA) and is eligible for purchase by government-sponsored entities like Fannie Mae and Freddie Mac. These loans adhere to specific loan limits, which vary by region, and must meet certain credit, income, and documentation requirements. Because of their standardized guidelines, conforming mortgages typically offer lower interest rates and more favorable terms compared to non-conforming or jumbo loans.

Conforming loans are an excellent option for homebuyers who meet the qualifications and are looking for affordability and predictability in their mortgage. They are available in various structures, such as fixed-rate and adjustable-rate mortgages, making them adaptable to different financial situations