Finance

A jumbo loan in Indiana exceeds the Fannie Mae/Freddie Mac conforming loan limits and typically features:

ALower rates than conforming loans
BStricter underwriting requirements including higher credit scores, larger down payments, and lower DTI ratios✓ Correct
CGovernment guaranty from FHA
DThe same requirements as conforming loans

Explanation

Jumbo loans (above the conforming loan limit) are not eligible for Fannie/Freddie purchase. Lenders hold them in portfolio and typically impose stricter requirements — higher credit scores (720+), larger down payments (10–20%), and lower DTIs.

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