FinanceIntermediateAlaska Exam

Which of the following is a characteristic of a 'jumbo loan' in Alaska?

AIt is insured by FHA
BIt exceeds the conforming loan limits set by Fannie Mae and Freddie MacCorrect
CIt requires no down payment
DIt is only available through government-sponsored lenders, in most cases

Why It exceeds the conforming loan limits set by Fannie Mae and Freddie Mac Is Correct

Answer B: It exceeds the conforming loan limits set by Fannie Mae and Freddie Mac

A jumbo loan exceeds the conforming loan limits established by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac purchase. Because jumbo loans cannot be sold to Fannie or Freddie, they typically carry higher interest rates and stricter qualification requirements.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

Key Finance Terms in This Question

People Also Study

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →