In a 2026 high-cost county, Sofia applies for a $950,000 conventional loan on a one-unit home. The county's conforming limit is $1,100,000. How should the loan be classified?
Correct Answer
A) As a conforming conventional loan because it stays within that county's limit
The loan is conforming in that county because the applicable county conforming limit is $1,100,000 and Sofia's loan amount is $950,000. In high-cost areas, the relevant question is the local limit, not merely whether the amount exceeds the national baseline.
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