What is the difference between conforming and nonconforming?
Conforming loans meet Fannie Mae or Freddie Mac size and underwriting rules — they're eligible for sale to those agencies. Nonconforming loans (jumbo, portfolio, non-QM) don't fit those rules. Most conventional loans are conforming.
Plain-English explanation
The conforming label means the loan amount is at or below the FHFA county limit AND the underwriting fits Fannie/Freddie selling guides. Loans above the limit are jumbo. Loans that fit the size limit but don't fit the credit/income/property rules are 'portfolio' (lender keeps the loan) or 'non-QM' (alternative documentation). Pricing usually rewards conforming because those loans have a deep secondary market.
What can change the answer?
Fannie Mae and Freddie Mac guidelines, lender overlays, and your specific file (credit, income, property, occupancy) drive the actual answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Basics
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.