FHA VS CONVENTIONAL

 
WHAT IS A FHA LOAN?

What is a FHA loan?

 
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FEDERAL HOUSING ADMINISTRATION MORTGAGES HAVE FLEXIBLE LENDING STANDARDS.thEY CAN BENEFIT:

  • People whose house payments will be a chunk of take-home pay
  • Borrowers with low credit scores
  • Homebuyers with small down payments and refinancers with equity.

 

 

WHAT IS A CONVENTIONAL LOAN?

 

Conventional mortgages follow fairly conservative guidelines for

  • Borrowers credit scores
  • Minimum down payments
  • Debt-to-income ratios

 

 

Conventional

  • Good rate
  • Appraisal required
  • MI Depending on LTV
  • Lower credit score high impact
  • Income verification
  • Normal closing times

FHA

  • Great rate
  • UFMIP (UpFront Mortgage Ins. Premium)
  • Mortgage Insurance (MI) Life of Loan
  • Low credit scores low impact
  • Income verification
  • Normal closing times
 
 
 
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