Finance
In Minnesota, a 'jumbo loan' refers to a mortgage that:
AHas a large down payment requirement
BExceeds the conforming loan limit set by FHFA for purchase by Fannie Mae or Freddie Mac✓ Correct
CIs guaranteed by the federal government
DHas an interest rate above market average
Explanation
A jumbo loan exceeds the conforming loan limit (set annually by FHFA—approximately $726,200 in most areas in recent years). Jumbo loans cannot be purchased by Fannie Mae or Freddie Mac and are typically held in the lender's portfolio. They usually require stronger credit, larger down payments, and carry higher interest rates.
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