 TITLE: How Do Fannie Mae and Freddie Mac Loans Work? CONTENT: Alternatives to Fannie Mae and Freddie Mac Loans\n------------------------------------------------\nIf a Fannie Mae- or Freddie Mac-conforming loan doesn't work out, you do have other options. Here are four of them.\n1.  FHA loans: FHA loans, backed by the Federal Housing Administration (FHA), offer low down payment options (at least 3.5%) and low minimum credit score requirements (as low as 500 if you can provide a 10% down payment).\n2.  VA loans: VA loans, backed by the U.S. Department of Veterans Affairs, are available to active-duty members of the military, military veterans and surviving spouses.\n3.  USDA loans: Mortgage loans offered through the U.S. Department of Agriculture (USDA) are designed for low- and moderate-income borrowers in rural areas.\n4.  Jumbo loans: A jumbo mortgage exceeds the borrowing limits set by Fannie Mae and Freddie Mac for a conventional loan. In most of the U.S., the borrowing limit for 2021 is $548,250. In high-cost regions, the limit for 2021 is $822,375. END