Finance
A 'conventional loan' is best described as:
AA. A loan guaranteed by the federal government
BB. A non-government-backed mortgage loan that conforms to Fannie Mae/Freddie Mac guidelines or is a private (portfolio) loan✓ Correct
CC. Only a fixed-rate, 30-year mortgage
DD. A loan available only to first-time homebuyers
Explanation
A conventional loan is any mortgage not backed by a government agency (unlike FHA, VA, or USDA loans). Conventional loans may be conforming (meeting Fannie/Freddie guidelines) or non-conforming (jumbo, portfolio). They are originated by private lenders and may be sold on the secondary market or held in the lender's portfolio.
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