Which type of real estate loan is guaranteed against loss by the government?

The Veterans Administration (VA) loan is guaranteed against loss by the government, providing substantial benefits to eligible veterans and active-duty service members. This type of loan is specifically designed to help these individuals access affordable financing for purchasing homes without requiring a down payment and often without private mortgage insurance. The government guarantees a portion of the loan, which minimizes the risk for lenders and allows them to offer more favorable terms to borrowers.

This guarantee is instrumental in making homeownership attainable for veterans who might otherwise face challenges in securing a conventional loan. Such backing contributes to the stability of the mortgage market and promotes homeownership among service members, further demonstrating the government's commitment to supporting its veterans.

The other options, while they include forms of loans that may have benefits or assistance, do not carry the same government guarantee. Conventional loans are not government-guaranteed and require a down payment, FHA loans are insured but not guaranteed in the same manner as VA loans, and seller carries back refers to seller-financed arrangements that do not involve government guarantees.