Which statement defines jumbo loan classification?

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Jumbo loan classification refers to a conventional mortgage that is nonconforming because it exceeds the conforming loan limit set by Freddie Mac and Fannie Mae. Those limits determine which loans are eligible for purchase by the government-sponsored enterprises; loans above the limit aren’t purchasable by them, so they are considered nonconforming. Because they aren’t government-backed, jumbo loans are typically underwritten by private lenders and often require higher down payments, tougher qualification criteria, and sometimes higher interest rates to reflect the increased risk.

The other statements don’t fit because a loan that stays within the conforming limit is considered conforming, not jumbo; a loan that is government-backed (FHA/VA/USDA) is not classified as jumbo simply by being large; and a loan below the conforming limit would not be jumbo.