- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (6)
Amanda and Scott -
Please avoid solicitation. We do not allow it here. Kindly read through our Good Neighbor Policy.
Thank you.
- Advanced Mortgage
- Contributions:3
Ask the lender or lenders for a Good Faith Estimate on the two options and that should help you make the decision.
Scott Gillespie
www.advmortgageservices.com
Scott Gillespie
www.advmortgageservices.com
- AGCGartner
- Contributions:84
We can determine which would cost you less:
Direct lender, no broker fees:
Call 443-540-6069 and get your finacing worked out. Amanda
Direct lender, no broker fees:
Call 443-540-6069 and get your finacing worked out. Amanda
- Allen Mische, "Allen Mische"
- Contributions:33
Also, interest rates on a FHA loan are not as credit score sensitive as Conventional loan rates are. For example, if you had a 660 FICO score, the FHA rate will be a lot lower than a Conventional loan rate.
- Brian Simantel, "SuperbMortgage"
- Contributions:57
hondahank97,
Every scenario, borrower, goals, property all have different answers. They both have their benefits "pro's" and "cons"
Here is a quick guide and something to think about:
FHA Pro's - low down payment, "easier" qualifications (low to no reserve requirements, gifts are okay, non-occupant co-borrows to help qualified are allowed, lower monthly MI (mortgage insurance) payments, possible FHA Streamline refi if rates continue to decline (if you are already in an FHA loan). Min. 3% down
FHA Con's - 1.75% upfront MI (can be paid at close or wrapped into your loan), possible home repair requirements
Conv. Pro's - No upfront MI, options (all banks offer this product)
Conv. Con's - higher monthly MI payments, minimum 5% down, tighter underwriting guidelines (this could be considered a pro!)
Hands down, FHA has helped save home values by allowing people to qualify for a mortgage that would not otherwise qualify. Allowing people to qualify increase demand for properties, thus stabalizing values.
Let me know if you need more information!
Every scenario, borrower, goals, property all have different answers. They both have their benefits "pro's" and "cons"
Here is a quick guide and something to think about:
FHA Pro's - low down payment, "easier" qualifications (low to no reserve requirements, gifts are okay, non-occupant co-borrows to help qualified are allowed, lower monthly MI (mortgage insurance) payments, possible FHA Streamline refi if rates continue to decline (if you are already in an FHA loan). Min. 3% down
FHA Con's - 1.75% upfront MI (can be paid at close or wrapped into your loan), possible home repair requirements
Conv. Pro's - No upfront MI, options (all banks offer this product)
Conv. Con's - higher monthly MI payments, minimum 5% down, tighter underwriting guidelines (this could be considered a pro!)
Hands down, FHA has helped save home values by allowing people to qualify for a mortgage that would not otherwise qualify. Allowing people to qualify increase demand for properties, thus stabalizing values.
Let me know if you need more information!
- Diane Tuman, "dianetuman"
- Contributions:582
Here's a quick overview:
An FHA loan is the easiest type of real estate mortgage loan to qualify for because it requires a low down payment and you can have less-than-perfect credit. Also, because FHA insures your mortgage, lenders are more willing to provide loans. Another advantage of an FHA loan is it's assumable, which means if you want to sell your home, the buyer can "assume" the loan you have. FHA loans can be used for a home purchase or a refinance.
Read more in this article.
An FHA loan is the easiest type of real estate mortgage loan to qualify for because it requires a low down payment and you can have less-than-perfect credit. Also, because FHA insures your mortgage, lenders are more willing to provide loans. Another advantage of an FHA loan is it's assumable, which means if you want to sell your home, the buyer can "assume" the loan you have. FHA loans can be used for a home purchase or a refinance.
Read more in this article.
What are the pros and cons of FHA versus conventional loan? Which is better?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.