A Harvard student heard from a friend at UCLA, who had recently taken an excellent real estate finance and investments course, that a “conforming” mortgage loan would likely provide her with the lowest possible interest rate on the home loan for the $1 million condo she was planning to buy on Wilshire Boulevard in Westwood. For a home loan to be a “conforming” mortgage loan, it would: Require that she have a DSCR or FICO score lower than the minimums currently required by Fannie Mae and Freddie Mac for such loans Have an LTV ratio that is higher than the ratio currently approved by Fannie Mae and Freddie Mac Have to comply with the underwriting guidelines for loans that Fannie Mae and Freddie Mac can buy at the time of loan origination Have to exceed the $1,089,300 maximum loan limit currently permitted by Fannie Mae and Freddie Mac for home loans in high cost areas like Los Angeles

A Harvard student heard from a friend at UCLA, who had recently taken an excellent real estate finance and investments course, that a “conforming” mortgage loan would likely provide her with the lowest possible interest rate on the home loan for the $1 million condo she was planning to buy on Wilshire Boulevard in Westwood. For a home loan to be a “conforming” mortgage loan, it would: Require that she have a DSCR or FICO score lower than the minimums currently required by Fannie Mae and Freddie Mac for such loans Have an LTV ratio that is higher than the ratio currently approved by Fannie Mae and Freddie Mac Have to comply with the underwriting guidelines for loans that Fannie Mae and Freddie Mac can buy at the time of loan origination Have to exceed the $1,089,300 maximum loan limit currently permitted by Fannie Mae and Freddie Mac for home loans in high cost areas like Los Angeles

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