Loan Limits on Conforming Mortgages Going Up in 2021

Christy Bieber, The Motley Fool
·3-min read
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.