Texas Real Estate State Practice Exam

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Prepare for the Texas Real Estate State Exam with comprehensive study materials. Engage in multiple choice questions and gain insights with in-depth explanations and examples. Ace your exam confidently!

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

Conventional Loans
FHA Loans
VA Loans
Government-Backed Loans

The correct answer is: 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.