Finance
A conventional loan is best described as a mortgage that is:
AInsured by the FHA
BNot insured or guaranteed by a federal government agency✓ Correct
CGuaranteed by the VA for eligible veterans
DIssued directly by the U.S. Department of Agriculture
Explanation
A conventional loan is any mortgage not backed by a federal agency (FHA, VA, USDA). It may be conforming (sold to Fannie/Freddie) or non-conforming.
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