Finance
In New Mexico, a 'conforming jumbo' or 'super conforming' loan is one that:
AExceeds the FHFA loan limit but qualifies for Freddie Mac purchase in high-cost areas✓ Correct
BExceeds all loan limits and cannot be sold on the secondary market
CIs insured by FHA
DRequires no appraisal
Explanation
In designated high-cost areas (not common in NM), FHFA sets higher conforming loan limits. Loans between the standard and high-cost limits are sometimes called 'super conforming' and can be sold to Freddie Mac.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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