A borrower is purchasing a home for $950,000 in a standard cost area with a 20% down payment. What type of loan would they need?
Correct Answer
B) Non-conforming conventional loan
With a 20% down payment on a $950,000 home, the loan amount would be $760,000. Since this exceeds the 2024 conforming loan limit of $766,550 in most areas, this would be a non-conforming (jumbo) conventional loan that cannot be purchased by Fannie Mae or Freddie Mac.
Why This Is the Correct Answer
With a 20% down payment on a $950,000 home, the loan amount would be $760,000. Since this exceeds the 2024 conforming loan limit of $766,550 in most areas, this would be a non-conforming (jumbo) conventional loan that cannot be purchased by Fannie Mae or Freddie Mac.
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