A conforming loan is a mortgage whose underlying terms and conditions meet the funding criteria of government-sponsored enterprises Fannie Mae and Freddie Mac. The value of the loan must fall under a certain limit, known as the conforming loan limit, set by the Federal Housing Finance Agency (FHFA). For 2020, this baseline limit is $510,400. In certain high-cost markets, such as New York or San Francisco, the limit is $765,600. These loans often offer consumers more affordable interest rates.