A borrower in San Francisco is obtaining a $1,100,000 loan for a single-family home purchase. Assuming San Francisco is a high-cost area, what type of loan is this?
Correct Answer
A) Conforming conventional loan
Since San Francisco is a high-cost area with a conforming loan limit of $1,149,825 for 2024, a $1,100,000 loan would still be within the conforming loan limits and therefore would be a conforming conventional loan eligible for purchase by Fannie Mae or Freddie Mac.
Why This Is the Correct Answer
Since San Francisco is a high-cost area with a conforming loan limit of $1,149,825 for 2024, a $1,100,000 loan would still be within the conforming loan limits and therefore would be a conforming conventional loan eligible for purchase by Fannie Mae or Freddie Mac.
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