conforming loan

conforming loan definition - business

conforming loan

  1. A loan application that meets a lender's specified standards. For example, a lender might require that a borrower have a good credit record, job stability, a minimum ratio of debt to income, and make a substantial down payment.
  2. A conventional mortgage that conforms to standards established by Fannie Mae or Freddie Mac.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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