A conforming mortgage is not the same as a conventional mortgage. However, a mortgage can be both conforming and conventional at the same time.

A little confusing I know but here is the definition of a conforming mortgage.

Conforming Mortgage Definition

A conforming mortgage is a conventional mortgage that is less than or equal to the conforming mortgage limit.

The current conforming mortgage limit is $417,000. A conventional mortgage is underwritten by Fannie or Freddie and has hard mortgage limits. Government mortgages are underwritten by the government and have mortgage limits that vary by geographical area.

A conventional mortgage over $417,000 is considered a jumbo mortgage.

So think of it this way…

Conforming is about mortgage amounts. The opposite of conforming is a jumbo mortgage for a conventional mortgage.

Conventional is about the type of mortgage. The opposite of conventional is a government mortgage.

That is why a mortgage can be both conforming and conventional. A mortgage under the limit of $417,000 that is not a government one is both conforming and conventional.

Most of the time, when you see mortgage rates being reported they are 30 year conforming mortgage rates since the majority of you get one. Jumbo mortgage rates are much higher than conforming.

The conforming loan limit is changed every year or so to factor in change real estate values and therefore, can be move either up in good markets or down in bad markets.

However, there are geographic areas where the loan limit is different, for example, in high cost areas like Silicon Valley or Manhattan.

These are called high cost mortgages or jumbo conforming mortgages. To read more about high cost mortgages and areas read Jumbo Mortgage Rates High Compared to Non Jumbo Mortgage Rates.

In that post is the difference between a high cost mortgage, a jumbo mortgage, and a conforming mortgage.

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