Which of the following is not a government-backed mortgage program?

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Multiple Choice

Which of the following is not a government-backed mortgage program?

Explanation:
Government-backed mortgage programs are those where the government provides an insurance or guarantee to lenders, reducing the lender’s risk. The FHA loan is insured by the Federal Housing Administration, the VA loan is guaranteed by the Department of Veterans Affairs, and the USDA loan is backed by the U.S. Department of Agriculture. These guarantees are what give them the government-backed label and typically enable features like lower down payments or more flexible qualification. A conventional loan, on the other hand, is not insured or guaranteed by a government agency. It’s funded by private lenders and may require private mortgage insurance if the down payment is small, but it does not carry a government guarantee.

Government-backed mortgage programs are those where the government provides an insurance or guarantee to lenders, reducing the lender’s risk. The FHA loan is insured by the Federal Housing Administration, the VA loan is guaranteed by the Department of Veterans Affairs, and the USDA loan is backed by the U.S. Department of Agriculture. These guarantees are what give them the government-backed label and typically enable features like lower down payments or more flexible qualification.

A conventional loan, on the other hand, is not insured or guaranteed by a government agency. It’s funded by private lenders and may require private mortgage insurance if the down payment is small, but it does not carry a government guarantee.

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