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Mortgage Agent Licensing Practice Exam · Question

Which of the following is NOT a characteristic of a 'conventional mortgage'?

Conventional mortgages are widely available from various lenders, including banks, credit unions, and trust companies, not exclusively private lenders. Their de

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Question: Which of the following is NOT a characteristic of a 'conventional mortgage'?

Answer options:

  • Requires a minimum 20% down payment.
  • Does not require mortgage default insurance.
  • Loan-to-Value (LTV) ratio is 80% or less. ✅ Can only be obtained from private lenders.

Correct answer: Can only be obtained from private lenders.

Explanation: Conventional mortgages are widely available from various lenders, including banks, credit unions, and trust companies, not exclusively private lenders. Their defining characteristics are a 20% or greater down payment and no requirement for mortgage default insurance.

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