Finance
A Colorado buyer making a conventional loan application with a credit score of 740 and a 20% down payment would typically qualify for:
AA. No special benefits
BB. The most favorable loan terms — lowest interest rates, no PMI, and higher loan limits available for conventional conforming loans✓ Correct
CC. Only FHA loan eligibility
DD. Only adjustable-rate loans
Explanation
A credit score of 740+ and 20% down payment is an ideal conventional loan profile. With 20% down, no PMI is required. A high credit score qualifies for the lowest rate tier. This combination represents the most favorable pricing for a conventional conforming loan.
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