In January 2026, Devon applies for a $900,000 mortgage on a one-unit home in a typical U.S. county that uses the national baseline conforming limit. Which loan classification fits best?
Correct Answer
A) A jumbo non-conforming loan because it exceeds the baseline county limit
For 2026, FHFA set the baseline conforming limit for one-unit properties in most U.S. counties at $832,750. Because Devon's requested loan amount is $900,000 in a county using that baseline, the loan exceeds the conforming limit and is classified as jumbo, which is a non-conforming conventional loan.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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