Advertiser Disclosure

advertising disclaimer
Skip to main content
mortgage loan paperwork

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
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

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