Conforming loans are conventional loans that use loan criteria set by Fannie Mae and Freddie Mac. These are government sponsored enterprises that function as holding companies to buy mortgage loans from lending institutions and in turn bundle them for resale to the investment community. Buying mortgage loans allows the banks to lend their money again and provide continuous flow of money to lenders that reinvest their money back into more mortgage loans. Fannie Mae and Freddie Mac only buy loans that are "conforming" to sell into the secondary (investment) market . The GSEs set the loan limits for this area as below.
Hawaii Conforming Loan Limits:
Number of Units Maximum original principal balance
1 $625,500 .00
NOTE: The conforming loan limit in Alaska, Hawaii, Guam and the Virgin Islands is 50% higher than the contiguous 48 states.