A Florida real estate licensee is explaining different types of mortgage loans to clients. All of the following statements about jumbo loans are true EXCEPT:
Correct Answer
D) Jumbo loans can be purchased by Fannie Mae and Freddie Mac
Correct: Jumbo loans CANNOT be purchased by Fannie Mae and Freddie Mac because they exceed conforming loan limits, making C the exception. Option A is correct as jumbo loans exceed FHFA limits. Option B is correct as they typically require larger down payments. Option D is correct as qualification standards are usually stricter.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
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