Most people wrongly think conventional mortgages are government-backed. They're not. FHA, FMHA, and VA loans all have government guarantees, but conventional mortgages are only backed by Fannie Mae and Freddie Mac standards.
Get ready for question of the day. Mortgages that are not guaranteed by a government agency are called: A, FHA loans. B, FMHA mortgages. C, conventional mortgages. D, VA mortgages. The answer is letter C. A conventional loan is a mortgage that is not backed by any government agency such as the Federal Housing Administration, FHA, or Veterans Administration, VA. Conventional loans often meet the lending requirements Fannie Mae and Freddie Mac, the 2 largest buyers of mortgage loans in the U.S. Learned something new? Give us a like, tag a friend, and let's keep the conversation going. Message us here or visit our website.
