Conventional Loan Vs FHA (Which Mortgage Loan is Better?)

Conventional Loan Vs FHA (Which Mortgage Loan is Better?)

Is FHA Better Than Conventional? What is the difference between FHA and Conventional? In this video we answer both of these questions and go over some of the pros and cons of each. Now there are several different types of mortgage loans but these two are some of the most popular types of home mortgages and with good reason.

Instagram: www.instagram.com/theoutofstateinvestor
Tiktok: www.tiktok.com/@Theoutofstateinvestor

For any one on one coaching or other business inquiries email me at: TheOutOfStateInvestor@gmail.com

With an FHA Loan, your downpayment will be as Low as 3.5% down and that applies for 1-4 units. With a Conventional Mortgage loan you can actually go as low as 3% down although it comes with some requirements such as at least one borrower must have had no ownership interest in a house in the last 3 years. Also when considering the best mortgage loan, you have to consider credit score requirements. With the conventional home loan, you need a minimum 620 credit score to qualify where as with fha you only need a 580 and you still can qualify with as low as 500 if you're willing to put down 10%.

Another thing to look at when comparing FHA vs Conventional is removing PMI or MIP. This is an insurance premium that with FHA, you have to refinance in order to remove it but with Conventional, you can either let it come off naturally or you can call your lender to remove it once you believe you have 20% equity in your home.

Now you might be wondering is a conventional loan better than fha with interest rates? Well, it can be pretty complicated as it can depend on credit score, loan amount and other factors so the answer to that is it depends on your situation. I recommend consulting with your lender about that to truly know the answer.

FHA Appraisals are also more restrictive when it comes to appraisals than conventional so if your looking for a fixer upper, you're most likely going to be better off with a conventional loan. But with all this information accounted for, Is FHA Better Than Conventional? It's really going to be a case by case basis to truly determine that but my personal preference is conventional loans. They make for stronger offers as a buyer, they have the flexibility with the appraisal and the PMI Removal. You avoid the up front MIP. There's a lot of pros to using Conventional especially when you have a good credit score.

#MortgageAdvice #HomeBuyingTips #RealEstate

Видео Conventional Loan Vs FHA (Which Mortgage Loan is Better?) канала James Allen