Finance
A conventional mortgage loan is one that:
AIs insured by the FHA
BIs guaranteed by the VA
CIs not insured or guaranteed by a government agency✓ Correct
DMust be sold to Fannie Mae or Freddie Mac
Explanation
A conventional loan is a mortgage not insured or guaranteed by a federal government agency such as FHA, VA, or USDA. It is funded by private lenders and may or may not be conforming (meeting secondary market standards).
Related Arkansas Finance Questions
- Mortgage escrow accounts are used by lenders to:
- In a fixed-rate mortgage, the monthly payment of principal and interest:
- What is a negative amortization loan?
- The Good Faith Estimate (GFE) was replaced under TRID by the:
- Which of the following best describes a home equity line of credit (HELOC)?
- Which type of mortgage features payments that remain constant but are applied entirely to principal (no interest)?
- A borrower has a $200,000 loan at 6% annual interest. The monthly payment is $1,199.10. Of the first month's payment, how much is principal?
- Mortgage insurance on an FHA loan is called:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →