Conventional vs. Government (FHA, VA, RHS)

There are many types of home loans. In the United States, two very broad types are “conventional” and “government.” Conventional loans are most closely associated with Fannie Mae and Freddie Mac, two government-sponsored agencies. The Federal Housing Administration (FHA) and Veteran’s Administration (VA) provide a loan guarantee program in lieu of private mortgage insurance so qualified borrowers can get a mortgage loan with a low down payment. Borrowers should know that these agencies don’t lend money, but they “guarantee” the loan so the lender doesn't take on a financial risk by extending you credit.

More Loan Type Information