Which type of loan is not insured by the FHA or guaranteed by the VA?

A conventional loan is not insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Conventional loans are typically offered by private lenders and do not have the government backing that FHA or VA loans provide. This lack of insurance or guarantee means that conventional loans can have stricter credit requirements and higher down payment expectations compared to FHA and VA loans, which are designed to help lower-income buyers or veterans secure financing with more favorable terms.

FHA loans are designed to assist borrowers with lower credit scores by providing insurance on the loan, thereby mitigating the lender's risk. VA loans, on the other hand, are specifically for veterans and active service members, offering guaranteed financing, which typically does not require a down payment and has favorable terms as well. Subprime loans, while also not insured or guaranteed by the FHA or VA, are categorized differently based on the risk associated with the borrower’s credit profile, and still typically fall under the conventional loan umbrella. In contrast, conventional loans represent a broader category that does not include government insurance or guarantees.