What financing term is typically associated with Bobby-Sue's mortgage?

A conventional mortgage is a type of financing that is not insured or guaranteed by the government, often characterized by more stringent credit requirements, a standard down payment, and typically lower interest rates compared to other types of financing. This type of mortgage is frequently used by borrowers who have good credit scores and stable financial situations, making it a popular choice.

In the context of Bobby-Sue's mortgage, if she qualifies for a conventional mortgage, it suggests that she meets the criteria set by lenders for this type of lending, which typically includes a healthy credit history and a sufficient down payment. This option aligns well with the typical requirements associated with conventional financing and is likely the most common choice for borrowers seeking home loans.

Other mortgage types like subprime, Alt-A, and interest-only loans cater to different borrowing situations, such as borrowers with poor credit, those who may not qualify for conventional loans but still seek more flexible terms, or those who wish to minimize initial payments through interest-only arrangements. Each of these options serves specific needs and may involve higher risks or costs, making them less suitable compared to the stability and reliability associated with a conventional mortgage.