Finance
A jumbo loan is one that:
AIs backed by the federal government
BExceeds the conforming loan limits set by Fannie Mae and Freddie Mac✓ Correct
CHas a term longer than 30 years
DIs used only for commercial properties
Explanation
A jumbo loan exceeds the conforming loan limits established by the FHFA. Because jumbo loans cannot be purchased by Fannie Mae or Freddie Mac, they typically carry higher interest rates.
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