Texas Real Estate State Practice Exam

Question: 1 / 400

What term is used for loans that meet the criteria to be bought in the secondary market?

Conventional Loans

Conventional loans refers to mortgage loans that are not guaranteed or insured by any government agency. This means that they do not fall under either FHA Loans, VA Loans or Government-Backed Loans. FHA loans are insured by the Federal Housing Administration, while VA loans are guaranteed by the U.S. Department of Veterans Affairs. Government-Backed Loans include both FHA loans and VA loans. Therefore, conventional loans are the only type of mortgage loans that can be bought and sold in the secondary market without any government guarantees or insurance.

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FHA Loans

VA Loans

Government-Backed Loans

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