diversification reduces risk and increases return over the long term. Many people disagree with that quote - big notable investors like Trump, Buffett etc... But ... Most traditional Financial Advisors are eager to get you on the path to owning your when we're talking about our Primary Residences and diversification, are traditional Financial Advisors barking up the wrong tree?? that's the mantra of today's Financial Planner. But that's what we're taught... Diversify Diversify Diversify... Does the lender make privately or federally insured or guaranteed loans? Some mortgage loans may be backed by a federal agency, such as the Federal Housing Administration (FHA loans) or the Department of Veterans Affairs (VA loans).