Conforming Loans

Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Both of these stock-holding companies buy mortgage loans from lending institutions and secure them for resale to the investment community. Every year, form October to October, Fannie Mae and Freddie Mac establish limits on what constitutes a conforming loan in a mean home price. The primary advantage of a conforming loan is that, for borrowers with excellent credit, they typically offer lower interest rates, which means lower monthly mortgage payments and less money spent over the life of the loan.

Buying back mortgage loans allow these agencies to provide a continuous flow of affordable funding to banks that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market – effectively decreasing the demand for non-conforming loans. Texas Premier Mortgage is a qualified Conforming Loan Lender servicing clients in The Woodlands, Spring, Conroe, and does business in surrounding areas such as Houston, as well as the entire state of Texas.

Conforming Loan Limits:

Number of Units Maximum original principal balance Alaska, Guam, Hawaii, and U.S. Virgin Islands only
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925

NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher.

Texas Premier Mortgage will help educate you on the specific loans you qualify for and if a conforming loan is right for you.  Conforming products include Texas Purchase, Texas Refinance, and Texas Home Equity products.  The loan limit for conforming loans is $417,000.  Loans higher than this loan amount will qualify under our Jumbo product guidelines.

Refinance options include some of the following ratios under a conventional conforming product.

Up to 97% LTV with a 700 Fico
Up to 95% LTV with a 660 Fico
Up to 80% LTV with a 620 Fico

Call us today to review your loan profile.  Texas Premier Mortgage does not guarantee approval based on these ratios.  Your credit profile, income, work history, and collateral will be taken into consideration for loan approval and evaluated by a Texas Licensed Loan Officer.