Which of the following is an example of a conventional loan?

A conventional loan is defined as a mortgage that is not insured or guaranteed by the federal government. This type of loan typically follows the guidelines set by Fannie Mae and Freddie Mac but does not have the government backing that is characteristic of loans such as FHA, VA, or USDA loans.

Option B correctly identifies a conventional loan, highlighting that it operates within the realm of private lending and adheres to established guidelines without the safety net of governmental insurance. In the context of the other options, the loan backed by FHA insurance explicitly indicates it is government-insured, the VA loan is designed for eligible veterans and also backed by the government, and a loan specifically for first-time homebuyers could fall under various categories including state or federal programs, which may also have governmental support. Thus, the key aspect of a conventional loan lies in its lack of government backing, making option B the definitive answer.