| Conventional financing is any loan program that is not backed and insured by the Federal Government. I'm sure you've heard of conforming and non-conforming loans, these are conventional type loan programs. They have different underwriting and credit criteria and for the most part have to meet Fannie Mae & Freddie Mac guidelines. Due to newly implemented credit and income criteria, Conventional financing is losing some ground to the alternative of FHA financing. FHA Loans have several advantages over conventional loans, including lower down payments and more relaxed credit-qualifying guidelines. The federal government created FHA loan programs to encourage homeownership throughout the country. The FHA can help people to obtain a loan with little or no down payment. FHA does not fund the loan; it simply insures the loan to limit the risk to the lender. |
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| Conventional vs FHA |
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Why Would You Consider FHA?
• If you have a minimum down payment or none at all
job or built up enough credit
• If you’re looking for lower monthly mortgage insurance rates
• If you’re a First time Homebuyer
• If you’re a Military Veteran
• If your credit is not perfect
job or built up enough credit
• If you’re looking for lower monthly mortgage insurance rates
• If you’re a First time Homebuyer
• If you’re a Military Veteran
• If your credit is not perfect
| The Mortgage Source Daily Mortgage Blogging From Deb Sineni |