Finance
A conventional loan is best described as:
AA loan insured by the FHA
BA loan guaranteed by the VA
CA loan not insured or guaranteed by any government agency✓ Correct
DA loan made by the government directly to borrowers
Explanation
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as FHA, VA, or USDA. These loans typically require higher credit scores and down payments.
Related North Carolina Finance Questions
- Which federal law requires lenders to provide the Loan Estimate to a borrower within 3 business days of receiving a loan application?
- A 'short-term mortgage' (balloon loan) differs from a fully amortizing loan in that the:
- A 'construction loan' in NC typically converts to a permanent mortgage upon:
- A 'piggyback loan' in NC mortgage financing involves:
- A NC 'conforming loan' meets the requirements to be purchased by Fannie Mae or Freddie Mac. These requirements include:
- Discount points on a mortgage loan are used to:
- Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?
- A homebuyer in NC is applying for an FHA loan. FHA mortgage insurance premium (MIP) differs from PMI in that MIP:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →