What is a benefit of a conventional mortgage?

A significant benefit of a conventional mortgage is that it generally has fewer restrictions on property types and uses compared to government-backed loans like FHA or VA mortgages. Conventional loans can be used for a wider range of property types, including single-family homes, multi-family units, and investment properties. This flexibility makes them attractive to borrowers who may want to purchase a variety of properties for different purposes.

While some other options may touch on characteristics associated with specific loan programs, they do not align with the typical benefits of conventional mortgages. For example, lower credit score requirements are often associated with FHA loans, which are specifically designed to assist borrowers with less-than-perfect credit histories. Additionally, conventional mortgages typically require a down payment, although some programs exist with minimal down payment options; the absence of down payment requirements is more characteristic of VA loans for eligible veterans. Lastly, conventional loans do not inherently have higher interest rates compared to FHA loans; rather, interest rates depend on various factors including the borrower's credit profile and market conditions, making this option misleading in the context of this question.