Finance

A Virginia homebuyer who wants to buy a $700,000 home with only 5% down would need a jumbo loan if the conforming limit in their area is:

A$766,550
B$650,000✓ Correct
C$726,200
D$500,000

Explanation

If the conforming limit is $650,000 and the loan amount is $700,000 × 95% = $665,000, the loan exceeds the conforming limit and would be a jumbo loan. Areas with conforming limits above $665,000 would require only a conforming loan.

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