# Fannie Mae and Freddie Mac

> Fannie Mae and Freddie Mac are congressionally chartered companies that buy mortgages from lenders. What they do, why conforming loans follow their rules.

URL: https://mortgage-math-us.com/glossary/fannie-mae-and-freddie-mac/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Fannie Mae and Freddie Mac** are government-sponsored enterprises chartered by Congress that buy mortgages from lenders and guarantee securities backed by them, which gives lenders money to make new loans. They don’t lend to consumers directly, and both operate under the conservatorship of the Federal Housing Finance Agency (FHFA), their regulator.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| 2026 baseline conforming loan limit, one unit | $832,750 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |
| 2026 high-cost area ceiling, one unit | $1,249,125 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |

## Why they shape your loan

A loan Fannie Mae or Freddie Mac can buy is a [conforming loan](https://mortgage-math-us.com/glossary/conforming-loan/). It must follow their Selling Guides on credit, [debt-to-income ratio](https://mortgage-math-us.com/glossary/debt-to-income-ratio/), down payment and documents, and stay within the [conforming loan limit](https://mortgage-math-us.com/glossary/conforming-loan-limit/): $832,750 for a one-unit home in most of the country in 2026, up to $1,249,125 in high-cost areas. That’s why conventional loans look so similar from lender to lender, including the 3% minimum down payment on some programs. Loans above the limit are [jumbo loans](https://mortgage-math-us.com/glossary/jumbo-loan/).

## Who you deal with

Even when one of them owns your mortgage, your lender or servicer remains your contact for payments and questions. Both companies offer online lookup tools that tell you whether they own your loan, which matters if you ever need help with payments, since their relief options apply to their loans. Freddie Mac also publishes the weekly [Primary Mortgage Market Survey](https://mortgage-math-us.com/glossary/pmms/), which put the average 30-year fixed rate at 7.24% this week. Compare conventional loans with the other types in the [conventional loans guide](https://mortgage-math-us.com/loan-types/conventional-loans/).

## Sources

- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit); 2026 high-cost area conforming ceiling (one-unit) (2026 limit)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum down payment on some conventional loans (Oct 28, 2026)
- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [CFPB: Mortgage key terms (Fannie Mae, Freddie Mac)](https://www.consumerfinance.gov/consumer-tools/mortgages/answers/key-terms/)

_General information, not financial advice._