What is a common feature of conventional loans?

A common feature of conventional loans is that they can come with either fixed or adjustable interest rates. Fixed-rate loans maintain the same interest rate over the life of the loan, providing predictable monthly payments. Adjustable-rate loans, on the other hand, have interest rates that can change based on market conditions, often starting with a lower initial rate that may increase later. This flexibility allows borrowers to choose what aligns best with their financial situation and goals.

The other options highlight characteristics that are not uniformly applicable to conventional loans. For instance, while some conventional loans may not have underwriting fees, this is not a defining trait of all conventional loans. The comparison of interest rates between conventional and FHA loans can vary based on market conditions and borrower qualifications, so it's not accurate to categorically state that conventional loans always offer lower rates. Lastly, flexibility in debt-to-income ratios tends to be more of a characteristic of government-backed loans which often have more lenient requirements compared to conventional loans.