Why FHA Loans and VA Mortgage Rates Are Typically 0.5% Higher

In referencing to the rates on FHA and VA loans, they are typically 1/4-1/2% higher than FNMA/FHLMC rates. This is because the GNMA funds are based on the faith and credit of theUnited States… they are NOT based on the yields from the 10 year note which drive conforming/conventional rates.
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