- Here at Homeowners Mortgage one of our specialites is Conforming Loans. We are conviently Located on Sherwood Forest Blvd right here in Baton Rouge so if You are in East Baton rouge, West Baton Rouge, Livingston, Ascension or Tangipahoa Parishes we are right around the corner but we service the entire state of Louisiana.
Conforming loans are conventional loans that meet bank-funding criteria set by Fannie Mae and Freddie Mac. 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.
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.
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