 TITLE: What Is a Conforming Loan? CONTENT: How Does a Conforming Loan Work?\n--------------------------------\nA conforming loan is the most common kind of mortgage loan. Conforming loans are widely available from lenders. But, unlike FHA, VA and USDA and home loans, they're not insured or guaranteed by the government. Typical guidelines for a conforming loan include:\n*   Minimum FICO® Score☉ of 620.\n*   Debt-to-income ratio up to 45% (although a high credit score or large stash of cash may push the ratio to 50%).\n*   Down payment as low as 3% of the loan amount.\n*   Loan amount falls under Fannie Mae or Freddie Mac limits.\nThe biggest difference between a conforming loan and a non-conforming loan is a lower borrowing limit. For 2021, the general limit to buy a single-family home with a conforming loan is $548,250, though the limit rises as high as $822,375 in some high-cost areas of the U.S.\nTo find the borrowing limit for a conforming loan where you plan to buy a home, use the Federal Housing Finance Agency's interactive mapping tool. END