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Conforming Loans vs. Nonconforming Loans: What Real Estate Investors Need to Know

A conforming loan can save you money, but not all investors can get one.


[Updated: May 19, 2021 ] Jan 16, 2020 by Matt Frankel, CFP

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Number of Units Maximum LTV Credit Score Requirements Reserve Requirements
1 Unit 85% 680 if LTV >75%

640 if LTV ≤ 75%

6 months
2-4 Units 75% 660 6 months

Data source: Fannie Mae

Number of Units Maximum LTV Credit Score Requirements Reserve Requirements
1 Unit 85% 700 if LTV > 75%

680 if LTV ≤ 75%

6 months
2-4 Units 75% 680 6 months

Data source: Fannie Mae

Number of Housing Units Standard Limit High-Cost Area Limit
1 $510,400 $765,600
2 $653,550 $980,325
3 $789,950 $1,184,925
4 $981,700 $1,472,550

Data source: Fannie Mae

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