They are originated to guidelines established by Fannie Mae or Freddie Mac which are Government Sponsored Enterprises (GSEs)
FHA and VA Loans:
- FHA loans have lower down payment requirements that may be easier to qualify for than a conventional loan. The loans are made by private lenders and insured by the FHA, with both an upfront and monthly charge for the insurance. The FHA has limits on the mortgage amount based on the county where the house is located.
- VA loans are made by private lenders and guaranteed by the department of Veteran Affairs (VA). VA loans are designed to help service people and veterans obtain financing at reasonable rates and offer financing up to 100 percent of the home’s value with a maximum loan limit of $417,000.