What type of loan is neither insured nor guaranteed by a government agency?

A conventional loan is indeed a type of mortgage that is neither insured nor guaranteed by a government agency. This type of loan is typically offered by private lenders and does not have the backing of the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA). As a result, conventional loans often require higher credit scores and larger down payments compared to government-backed loans, which aim to provide more accessible options for borrowers.

Conventional loans can be conforming, meaning they meet the limits set by government-sponsored entities like Fannie Mae and Freddie Mac, or non-conforming, which do not meet those limits. Because they are not insured, lenders may take on more risk with this kind of loan and therefore might impose stricter eligibility criteria on borrowers.

In contrast, options such as "contract for deed," "contingency," and "conveyance" do not represent a standard loan product. A contract for deed is a form of seller financing where the seller retains the title to the property until the buyer finishes paying off the sale price. A contingency refers to a condition or stipulation in a contract, and conveyance pertains to the transfer of property rights from one party to another. None