- 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.
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 loans are available through East Coast Mortgage Group located here in Auburn, Maine. We also can arrange a loan for you if you are located in Augusta, Lewiston, Brunswick, Portland, and all of the other surrounding communities here in Maine.
Conforming Loan Limits for Maine:
Number of Units Maximum original principal balance 1 $417,000 2 $533,850 3 $645,300 4 $801,950