A conventional mortgage is one that is not insured by the government in any way. This home loan is made in the private sector with no form of government backing.
A government-backed loan is insured by some type of federal agency, often the Department of Veteran Affairs (VA) or the Department of Housing and Urban Development (HUD). The loan may still be made in the private sector, but the lender receives insurance from the federal government. These government mortgages include FHA, VA and USDA (farming) loans.
Many things are considered when choosing a type of loan, including the amount of your down payment, how long you plan to stay in the home, and your credit score.
For more information on the mortgage application and pre-qualification process, please contact your financial institution, or connect with local resident and mortgage broker Glenn Davis.