Finance

A Texas borrower applies for a $500,000 mortgage in 2024. This loan likely exceeds the conforming loan limit and would be classified as:

AAn FHA high-balance loan
BA jumbo (non-conforming) loan✓ Correct
CA USDA rural loan
DA Texas Veterans Land Board loan

Explanation

Loans exceeding the FHFA conforming loan limits (which were around $766,550 in 2024 for most areas, but may differ) are jumbo loans. They are not eligible for purchase by Fannie Mae or Freddie Mac and may have different underwriting standards. At $500,000, it would be conforming in 2024, but this question tests the concept.

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