Conforming loan
A conventional mortgage that meets the size limit and guidelines set by Fannie Mae and Freddie Mac, so they can buy it — which usually earns a lower rate.
What does conforming loan mean?
A conforming loan is a conventional mortgage that fits within the annual conforming loan limit ($832,750 for a one-unit home in most of the U.S. for 2026) and meets Fannie Mae and Freddie Mac underwriting rules. Because those agencies will buy it, the lender takes less risk and passes on a lower rate. Cross the limit and you need a jumbo loan, which follows stricter, lender-set terms.
Frequently asked
What is the difference between a conforming and a jumbo loan?
A conforming loan fits within the annual limit ($832,750 in most areas for 2026) and follows Fannie Mae and Freddie Mac rules, usually at a lower rate.
A jumbo loan exceeds that limit, so the lender carries more risk and sets stricter terms.
Put it to use
Mortgage Calculator
Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.
Jumbo Mortgage Calculator
Price a loan above the conforming limit, with full amortization and total interest.
Down Payment Calculator
Turn a down-payment percentage into dollars and see whether you clear the 20% PMI threshold.
Related terms
All glossary terms