General Mortgage Knowledge · 20% of the SAFE exameasy
Correct answer: A conventional loan that exceeds the FHFA's annual conforming loan limit
A non-conforming conventional loan is one that fails to meet Fannie Mae or Freddie Mac purchase criteria, most commonly by exceeding the conforming loan limit set annually by the FHFA. A $300,000 loan meeting all guidelines would be conforming. FHA loans are government-backed, not conventional, so they are categorized separately — not as conforming or non-conforming conventional loans. A loan with a 20% down payment and 740 credit score meeting loan limits would be a textbook conforming loan.
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