A conforming mortgage is one that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are willing to buy. They have lower borrowing costs than private companies and can offer low interest rates on mortgages that conform to their requirements.
The use of a conforming loan is an excellent way to finance a new home, refinancing a mortgage or purchase investment property. Benefits include no mortgage insurance with 20% equity or 20% down payment, lower up-front costs and more loan options than private companies. Interest rates are usually lower than non-conforming loans which lowers long term borrowing costs.
30 Year Fixed Conventional: A top choice for many home buyers, investors and homeowners because it provides fixed principle and interest payments. The interest rate you get at the time of closing is the fixed rate of interest you pay over the loan term.
The most well-known guideline is the size of the loan, which remains at $417,000 for most counties in the United States including Nevada.
Conforming Loan Limits in Nevada as of 01/01/2016:
- One Unit: $417,000.
- Two Unit: $533,850.
- Three Unit: $645,300.
- Four Unit: $801,950.