There are two types of credit with mortgage guarantee- conventional and FHA.
Conventional credit with mortgage guarantee is available through private lenders and is not backed by the government. The main advantage of this type of loan is that it usually has a lower interest rate than an FHA loan. However, you will need to have good credit to qualify for a conventional loan. If you want to know more about credit with mortgage guarantee (also known as credito con garantia hipotecaria in Spanish) then navigate to https://sersa.com.py/mortgage-loan
FHA credit with mortgage guarantee is available through the Federal Housing Administration and is backed by the government. This type of loan is ideal for first-time homebuyers or those with less than perfect credit. The main advantage of an FHA loan is that it has more flexible qualifying guidelines than a conventional loan.
How a Credit with Mortgage Guarantee Works
Assuming you're referring to the UK government's Help to Buy scheme, a credit with mortgage guarantee is when the government offers lenders financial incentives to increase the availability of mortgages to people looking to buy newly built homes.
The government provides a guarantee to the lender that covers a percentage of the loan, which in turn enables the lender to offer higher loan-to-value ratios (LTVs) than they would otherwise be able to do. This makes it easier for people with smaller deposits to get on the property ladder.
It's worth noting that the maximum LTV under this scheme is 95%, so you'll still need a deposit of at least 5% of the property's value. The mortgage guarantee is only available on properties worth up to £600,000.