The term used for loans made without the backing of any government guarantee is __________.

Conventional loans refer to mortgage loans that are not insured or guaranteed by any government agency. This distinguishes them from other types of loans, such as VA loans and FHA loans, which have specific government backing. VA loans are backed by the Department of Veterans Affairs, and FHA loans are insured by the Federal Housing Administration. Because conventional loans are not supported by government guarantees, they often require higher credit scores and larger down payments compared to government-backed loans.

Loan modification, on the other hand, is a process that alters the terms of an existing mortgage to make it more manageable for the borrower, rather than referring to the type of loan itself. Understanding these definitions is crucial for real estate professionals to guide their clients appropriately regarding financing options.