What is one of the primary direct sources of money for mortgage loans for borrowers on residential property?

The choice that identifies one of the primary direct sources of money for mortgage loans for borrowers on residential property is private investors, specifically through conventional loans. Private investors include a wide array of entities or individuals who provide capital for mortgage loans, often through the securitization of those loans. These loans are typically not insured or guaranteed by government agencies, which means they are based on the creditworthiness of the borrower and the value of the collateral (the property).

Conventional loans, which include those funded by private investors, represent a significant portion of the mortgage market. They are essential because they provide borrowers with access to necessary funds without the level of regulation and requirements that government-backed loans might entail.

Other options like banks, while they are indeed a source of mortgage loans, do not exclusively account for the direct funding of these loans. Banks often act as intermediaries, originating loans but also selling them into the secondary market. Government funds typically refer to programs like FHA or VA loans, which are less about direct lending and more about guaranteeing loans to encourage more lending. Credit unions, while a source of loans, operate on a more limited scale and serve specific member groups rather than being a primary source for the broader market. Thus, private investors providing conventional loans stand