Which of the following loans is classified as a conventional loan?

A conventional loan refers to a type of mortgage that is not insured or guaranteed by a government agency. Instead, it is typically offered by private lenders and conducted according to the guidelines set by Fannie Mae or Freddie Mac, without any governmental backing.

The privately insured loan fits the definition of a conventional loan because it is not dependent on government insurance or guarantees. These loans usually involve lower rates and terms dictated by the market rather than government regulations.

In contrast, an FHA loan is insured by the Federal Housing Administration, thus qualifying it as a government-backed loan rather than a conventional one. Similarly, a VA loan is guaranteed by the Department of Veterans Affairs, providing specific benefits to veterans that also categorizes it outside of conventional loans. Lastly, while a Freddie Mac loan may be associated with conventional guidelines, it is still part of a governmental system designed to support mortgage lending; thus, it cannot be classified independently as a conventional loan.

Therefore, the privately insured loan is accurately classified as a conventional loan due to its lack of government backing.