Which type of loan is typically easier to obtain because it does not involve federal backing?

A conventional loan is typically easier to obtain because it is not backed by a federal agency, which means the lending process can be more streamlined. Lenders have more flexibility in terms of the underwriting process and criteria without the additional requirements that come with government-backed loans like FHA or VA loans.

Conventional loans often have standard documentation requirements and can be tailored more closely to the lender's policies, which can expedite approval for borrowers who meet those criteria. This flexibility often results in quicker processing times compared to government-insured loans, which may require additional steps and criteria to be met due to their federal backing.

In contrast, FHA and VA loans come with specific eligibility requirements and guidelines dictated by the federal government, which can make them less accessible in some cases. Subprime loans, on the other hand, cater to borrowers with poor credit histories and often come with higher interest rates and stricter conditions, making them a less conventional option.