Question

Conventional loans: Select one:

A. Are insured and guaranteed by the government
B. Present a lower risk to lenders, as compared to other loans
C. Use PMI to reduce risk
D. Permit eligible veterans to mortgage property with little or no down payment

Answer 1

Conventional loans present a lower risk to lenders and do not require mortgage insurance. They are not insured or guaranteed by the government. They may require private mortgage insurance (PMI) if the borrower puts down less than 20% of the purchase price.

Step-by-step explanation:

Conventional loans present a lower risk to lenders, as compared to other loans. These loans do not require mortgage insurance and are not insured or guaranteed by the government. They are typically offered by banks, credit unions, and other financial institutions. While conventional loans do not permit eligible veterans to mortgage property with little or no down payment, they may require private mortgage insurance (PMI) if the borrower puts down less than 20% of the purchase price.