What Is the Difference Between Government-Insured Loans and Conventional Loans?
Government-insured loans are backed by government agencies, which generally require a lower down payment and provide lower interest rates and larger loan amounts than conventional loans. Government-insured loans can also allow borrowers to qualify with lower credit ratings or annual income than they would usually need for similar conventional loans.
Conventional loans are those loans not guaranteed by the government, but are usually easier to obtain, with fewer applicants relative to the number of loans available. Government-insured loans tend to have many more candidates and so can be more competitive than conventional loans.
- What Is a Mortgage?
- What Type of Loan Should I Get for My Home?
- What Are the Different Types of Mortgage Loans?
- What Is the Process of Applying for a Mortgage?
- What Is the Difference Between a Housing Loan and a Mortgage Loan?
- What Is a Down Payment?
- How Much Down Payment Will I Need to Provide?
- Are There Any Mortgage Loans with No Down Payment?
- What Is an Escrow Account?
- What Is Home Equity?
- What Is the Difference Between a Loan and a Mortgage?
- How Do Mortgages Work?
- Where Can I Get a Mortgage?
- What Should I Look for in a Mortgage?
- Should I Pay My Mortgage Early?
- What Is the Average Mortgage Length?
- What Are the Advantages of a 15-Year Mortgage over a 30-Year Mortgage?
- What Are the Advantages of a 30-Year Mortgage over a 15-Year Mortgage?