Which type of mortgage is characterized as not insured or guaranteed by the government?

A conventional mortgage loan is characterized as not insured or guaranteed by the government. Unlike government-backed loans, such as those insured by the Federal Housing Administration (FHA), conventional mortgages are typically issued by private lenders and do not involve any government insurance. This means that if the borrower defaults on a conventional mortgage, the lender does not receive government support for any losses incurred.

Conventional loans typically require a higher credit score and a larger down payment compared to government-insured loans due to the absence of insurance. The significance of knowing about conventional mortgages lies in understanding the requirements and risks involved for both lenders and borrowers.