A jumbo loan:
- is also known as a conforming loan
- typically has higher rates than a conforming loan
- is within the limits defined by Fannie Mae and Freddie Mac
- is any loan over $1,000,000
Answer: B…D is partially correct – although a jumbo loan is usually in excess of $1,000,000 it is more accurately defined as being greater than $417,000 for most of the USA.