Finance
A Mississippi borrower's loan is 'conforming' because it:
AHas no down payment requirement
BMeets Fannie Mae and Freddie Mac's loan limits and underwriting standards✓ Correct
CIs insured by the FHA
DWas originated in Mississippi
Explanation
A conforming loan meets Fannie Mae and Freddie Mac's loan limits (set annually by FHFA) and underwriting standards, making it eligible for purchase by these agencies. Loans above the limit are non-conforming (jumbo).
Related Mississippi Finance Questions
- The primary market in real estate finance is where:
- A Mississippi homeowner who is 62 years old and has significant equity in their paid-off home is exploring a reverse mortgage (HECM). They should know that a HECM loan becomes due when:
- Which secondary market organization purchases conventional conforming loans from Mississippi lenders and helps provide liquidity to the mortgage market?
- A 'due-on-sale' clause in a mortgage requires:
- A Mississippi lender uses 'automated underwriting systems' (AUS) like Desktop Underwriter (DU) or Loan Product Advisor (LP). These systems:
- Which of the following best describes a purchase money mortgage in Mississippi?
- The loan-to-value (LTV) ratio on a property appraised at $250,000 with a $200,000 loan is:
- A Mississippi homebuyer's loan application includes a 'gift letter' from a parent providing $15,000 toward the down payment. For mortgage purposes, a gift letter must state:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →