Finance

An Oklahoma buyer is obtaining a 'jumbo' mortgage. Jumbo loans differ from conforming loans because they:

AHave lower interest rates than conforming loans
BExceed the conforming loan limits set by Fannie Mae/Freddie Mac, making them non-conforming and typically requiring stronger credit profiles and larger down payments✓ Correct
CAre only available for luxury properties
DAre guaranteed by the federal government

Explanation

Jumbo loans exceed the conforming loan limits (set annually by FHFA), making them ineligible for purchase by Fannie Mae or Freddie Mac. They typically require better credit scores, larger down payments, and more reserves than conforming loans.

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