Finance
A 'jumbo loan' is one that:
AHas an unusually long repayment term
BExceeds the conforming loan limits set by FHFA for Fannie Mae and Freddie Mac purchase✓ Correct
CIs insured by FHA
DHas more than 2 units as collateral
Explanation
A jumbo loan exceeds the FHFA conforming loan limits (which vary by location). Because they cannot be sold to Fannie Mae or Freddie Mac, jumbo loans are non-conforming and typically require stricter underwriting and higher down payments.
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