General Mortgage KnowledgeQuestion 112 of 400
A loan amount that exceeds the conforming loan limit set for Fannie Mae and Freddie Mac is called what?
a.An FHA loan
b.A subprime loan
c.A conforming loan
d.A jumbo loan
Explanation
A jumbo loan exceeds the conforming loan limit and cannot be purchased by Fannie Mae or Freddie Mac. A conforming loan is at or below the limit; FHA and subprime describe different features, not the size threshold.
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