Loan Programs

Government agencies such as the FHA, the FmHA, and the VA can insure or guarantee loans. The FHA is a part of the Department of Housing and Urban Development and insures residential mortgage loans made by private lenders. The FmHA provides financing for rural properties and VA loans are for veterans or members of the military and can have a lower down payment. Loans not guaranteed or insured by these agencies are known as conventional loans. These loans adhere to Fannie Mae or Freddie Mac guidelines. Fannie Mae, or Federal National Mortgage Association, and Freddie Mac, or Federal Home Loan Mortgage Corporation, are Government Sponsored Enterprises that purchases conventional mortgages from approved lenders. It sets the maximum loan amount and requirements for borrowers.