Finance
In New York, a 'conventional loan' differs from government-backed loans (FHA, VA, USDA) in that:
AConventional loans are only available to first-time homebuyers
BConventional loans are not insured or guaranteed by any government agency and are funded by private lenders according to standards set by Fannie Mae/Freddie Mac✓ Correct
CConventional loans have higher interest rates than FHA loans
DConventional loans have more flexible credit requirements than government loans
Explanation
A conventional loan is a mortgage not insured or guaranteed by any federal government agency. It is funded by private lenders (banks, credit unions, mortgage companies) according to standards set by Fannie Mae and Freddie Mac (for conforming loans) or by the lender's own standards (for non-conforming/jumbo loans).
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