Definition of Conforming Loan:

Conforming Loan in Orange County, California:

In Orange County as well as the rest of the United States, a conforming loan is a Mortgage Loan that conforms to Government Sponsored Enterprise or GSE (Fannie Mae and Freddie Mac) guidelines. The most well-known guidelines is the amount of the loan, which as of 2013 was limited to $417,000 for single family homes (SFR) in the U.S Other guidelines include borrower's Loan To Value (or LTV) (i.e. the size of down payment), Debt-To-Income Ratio (DTI), credit score and history, documentation requirements, etc.

In general, any loan which does not meet guidelines is a non-conforming loan. A loan which does not meet guidelines specifically because the loan amount exceeds the guideline limits is known as a Jumbo Loan.


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