Conforming Loans

Conforming loans can be resold in the secondary market due to the fact that they meet nationally accepted underwriting criteria established by national secondary market investors, primarily Fannie Mae (FNMA) and Freddie Mac (FHLMC). This criteria includes down payment amounts, maximum loan amounts, property specifications, borrower income requirements and credit guidelines. Due to the importance of being able to liquidate real estate investments (loans) in the event of a financial problem, the trend for lenders is to obtain loans that meet secondary market standards.

TIP: With any debt consolidation company that you choose, make sure you read the fine print. You don't want to be tricked into signing anything. Take the time to read, and if you don't understand what you are reading, do more research.