General Mortgage KnowledgeQuestion 136 of 400
A borrower needs to finance $820,000 in an area where the baseline conforming limit applies. What type of loan will this most likely be?
a.A conforming loan
b.An FHA loan
c.A USDA loan
d.A jumbo loan
Explanation
Because $820,000 exceeds the baseline conforming limit, the loan is classified as a jumbo (non-conforming) loan. It cannot be a standard conforming loan, and it exceeds typical FHA and USDA limits as well.
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