Quick Definition

A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

Examples

• 1A borrower purchasing a luxury home in a high-cost area where the price exceeds the local conforming loan limit.
• 2An investor acquiring an expensive multi-unit property that requires a loan amount beyond the standard limits.
• 3A family buying a high-priced home in a competitive market, needing a loan that surpasses the $647,200 limit in most areas.

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