FinancingQuestion 71 of 120
A conventional loan is one that is:
a.Insured by the FHA
b.Guaranteed by the VA
c.Funded by the Cal-Vet program
d.Not insured or guaranteed by a government agency
Explanation
A conventional loan is not backed by a government insurance or guarantee program such as FHA or VA. Lenders may require private mortgage insurance if the down payment is less than 20 percent. Conventional financing is the most common type of mortgage.
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