A guaranteed mortgage is one in which an entity, such as an insurance company or a federal agency, guarantees repayment of the mortgage loan in the event the homeowner is unable to pay. A lender may require some form of mortgage insurance because of the credit history of the borrower or because the amount of the down payment is lower than the customary percentage. Both the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) guarantee home mortgage loans. Loans that are not government-insured are referred to as conventional mortgages.

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