FinanceQuestion 79 of 100
A conventional loan is best described as one that is:
a.Not insured or guaranteed by a government agency
b.Guaranteed by the VA
c.Insured by the FHA
d.Always interest-only
Explanation
A conventional loan is not backed by a government program such as FHA insurance or a VA guarantee. It relies on the borrower's creditworthiness and the property as collateral. Government-backed loans have their own qualifying rules and benefits.
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