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Any mortgage loan other than a VA,
RHS or an FHA loan is conventional
one. VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The
guaranty allows veterans and service persons to obtain home loans with
favorable loan terms, usually without a down payment. In addition, it is
easier to qualify for a VA loan than a conventional loan. The U.S. Department of
Veterans Affairs does not make loans, it guarantees loans made by
lenders. VA determines your eligibility and, if you are qualified, VA
will issue you a certificate of eligibility to be used in applying for a
VA loan. VA-guaranteed loans are obtained by making application to
private lending institutions. If you are interesting in obtaining a
VA-guaranteed loan see pamphlets published by VA. The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs and no down payment. Visit our page RHS programs for details. The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. Go to FHA Programs page to get more information. Ginnie Mae which is part of HUD guarantees securities backed by pools of mortgage loans insured by these three federal agencies - FHA, or VA, or RHS. Securities are sold through financial institutions that trade government securities. |