Alabama Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What is the maximum loan amount for a conforming mortgage?

$100,000

$417,000

A conforming mortgage is a type of conventional mortgage that adheres to the guidelines set by government-sponsored enterprises such as Fannie Mae and Freddie Mac. These guidelines specify the maximum loan amount that can be considered a conforming mortgage.

Option A, $100,000, is significantly lower than the current conforming loan limit of $484,350 as of 2019. This amount may have been accurate in the past, but it is not the current maximum loan amount.

Option C, $104,500, is also lower than the current conforming loan limit and is not a commonly used limit.

Option D, $25,000, is significantly lower than the current conforming loan limit and is not a realistic maximum loan amount for a conforming mortgage.

Therefore, the correct answer is B, $417,000, as this is the current maximum loan amount for a conforming mortgage

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$104,500

$25,000

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