Alabama Real Estate Practice Exam

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Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

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What is the maximum loan amount for a conforming mortgage?

$100,000
$417,000
$104,500
$25,000

The correct answer is: $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