Finance

A 'jumbo loan' refers to a mortgage that:

AIs made to a borrower with poor credit
BExceeds the conforming loan limit set by FHFA✓ Correct
CRequires a down payment exceeding 25%
DHas a term exceeding 30 years

Explanation

A jumbo loan is a mortgage that exceeds the conforming loan limits established by the FHFA. Because these loans cannot be sold to Fannie Mae or Freddie Mac, lenders bear more risk and typically impose stricter qualification requirements.

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