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FHA v. Conventional: which Mortgage is Right For You?

No, it's not just you. Understanding standard versus federal housing administration (FHA) loans can feel like learning another language. Include terms like personal mortgage insurance, debt-to-income ratios, interest accrual and insurance coverage premiums and all of a sudden you feel like calling to offer Fannie and Freddie a piece of your mind.


Understanding these two home mortgage alternatives is key to making a notified choice. Let's break down the ins and outs of conventional versus FHA loans so you can feel empowered in choosing the right loan for your monetary health.


What Are FHA Loans?
What Are FHA Loan Requirements?
Other Questions to Consider Before Getting an FHA Loan


Exist Any Purchasing Restrictions or Limitations on FHA Loans?
Who Is an FHA Loan Best For?
Who Should Not Get an FHA Loan?
FHA Loan Benefits


Thoroughness of Residential Or Commercial Property Appraisals
Easier Approval
Fixed Interest Rates
Closing Costs
What Is a Traditional Loan?
Conventional Mortgage Requirements
How Do Purchasing Restrictions and Limitations Compare to FHA Loans?
Other Questions to Consider Before Getting a Standard Mortgage


Who Is a Standard Loan Best For?
Who Should Not Go With a Traditional Loan?
Conventional Loan Benefits


No Upfront PMI, Optional Annual PMI
Flexible Loan Terms
Higher Loan Values
Comparing FHA Versus Conventional Loans Limitations
Comparing Credit Rating Requirements for FHA Versus Conventional Loans
Are Down Payments Different for Conventional Loans Versus FHA Loans?
How to Choose the Right Mortgage for You


What Are FHA Loans?


Federal Housing Administration (FHA) loans are home mortgages guaranteed by the federal government. Generally speaking, it's a mortgage type enabling those with lower credit history, smaller sized down payments and modest earnings to still certify for loans.
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