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But what happens if a borrower desires to borrow greater than the Freddie- and Fannie-approved mortgage amount? In this case, they must apply for a “jumbo loan,” which is the commonest kind of non-conforming loan. VA loans are backed by the Department of Veterans Affairs and they're guaranteed to certified veterans and active-duty personnel and their spouses. VA loans could be permitted with 100 percent financing, that means VA borrowers aren't required to make a down payment.

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