Advantages

• Conforming mortgages are considered more low-risk and may be sold more easily on the secondary market. Because of this, they tend to carry lower interest rates than nonconforming mortgages, such as jumbo or sub-prime loans.
  
  

Conforming Mortgage Loan Limits

• The Federal Housing Finance Agency releases yearly conforming loan limits. In 2010, for the fifth straight year, the conforming mortgage limit for a single-family residence was $417,000. For two-unit properties the limit was $533,850; for three-unit residences it was $645,300; and for four-unit properties it was $801,950. The limits are 50 percent higher in areas such as Alaska, Hawaii, Guam and the U.S. Virgin Islands.
  
  

Conforming Mortgage Terms

• A conforming mortgage is a fixed-rate mortgage. Interest rate terms available are 15 and 30 years with fixed payments for the entire length of the term.