What type of loans are typically required to be obtained through approved lenders?

Government-insured loans are typically required to be obtained through approved lenders because they involve backing from federal or state entities, which set specific guidelines and standards that lenders must adhere to in order to qualify for the insurance. This includes various types of loans such as FHA loans, VA loans, and USDA loans. As these programs are designed to promote homeownership and provide support for specific demographics, it ensures that the loans are accessible and affordable for eligible borrowers. Approved lenders must comply with regulations and criteria established by the government, ensuring a level of security and support for both the lenders and borrowers involved in the transaction.