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But what happens if a borrower needs to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they must apply for a “jumbo mortgage,” which is the most typical type of non-conforming loan. VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans may be permitted with 100 percent financing, which means VA debtors usually are not required to make a down payment.

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