Which of the following is typically true about jumbo loans compared to conforming loans?
Correct Answer
B) They require higher credit scores
Jumbo loans typically require higher credit scores than conforming loans because they cannot be sold to Fannie Mae or Freddie Mac, creating additional risk for lenders. Most jumbo loan programs require credit scores of 700 or higher, compared to conforming loans which may accept scores as low as 620.
Why This Is the Correct Answer
Jumbo loans typically require higher credit scores than conforming loans because they cannot be sold to Fannie Mae or Freddie Mac, creating additional risk for lenders. Most jumbo loan programs require credit scores of 700 or higher, compared to conforming loans which may accept scores as low as 620.
More Mortgage Knowledge Questions
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