[vc_row][vc_column width=”1\/2″][vc_column_text]<\/p>\n
What’s the difference between an FHA Loan vs a Conventional Loan? One of the main differences is the down payment amount.<\/span><\/h2>\n[\/vc_column_text][\/vc_column][vc_column column_center=”true” width=”1\/2″]
![\"FHA](\"https:\/\/tailoredhomeloans.com\/wp-content\/uploads\/2020\/03\/FHA-vs-Conventional-Loan-Comparison.jpg\" "\\"FHA")
<\/div>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]<\/i><\/div><\/div>FHA Loan vs Conventional Loan Comparison.<\/h1>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]<\/div>[\/vc_column][\/vc_row][vc_row full_height=”true”][vc_column width=”1\/2″]\nFHA Loans are a great option when you have less than 20% down payment.<\/span><\/h3>\nAre backed by the Federal Housing Administration, which allow down payments as low as 3.5%.<\/p>\n
FHA Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a low credit score.<\/li>\n
- The Federal Housing Administration (FHA) allows down payments as low as 3.5% for those with minimum credit score of 580 or higher.<\/li>\n
- The FHA will insure loans for borrowers with scores as low as 500, but requires a 10% down payment for a score that is that low.<\/li>\n
- Mortgage Insurance is required for the life of an FHA Loan and can’t be canceled.<\/li>\n
- DTI (debt-to-income) ratio 45% (can be as high as 50%)<\/li>\n
- 100% of down payment can be a gift<\/li>\n
- Allows down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][vc_column width=”1\/2″]\n
Conventional Loans are a great option When you have 20% or more down payment.<\/span><\/h3>\nAren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.<\/p>\n
Conventional Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a high credit score of 680 or higher.<\/li>\n
- Available in fixed-rates, adjustable rates (ARM’s) with loan terms 10 to 30 years.<\/li>\n
- Can be used to buy a primary residence, second home or rental property<\/li>\n
- Mortgage Insurance is cancelable when home equity reaches 20% (unlike FHA which lasts the life of the loan, in most cases)<\/li>\n
- DTI (debt-to-income) maximum ratio 43%<\/li>\n
- Only part can be a gift if down payment is less than 20%<\/li>\n
- Does not allow down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][\/vc_row][vc_row][vc_column]<\/div>[vc_column_text]<\/p>\n
Financial Hacks…<\/h1>[vc_column_text]<\/span><\/span><\/strong><\/a><\/p>\n
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<\/div>[ess_grid alias=”financial-hacks-preview” settings=”{‘max-entries’:’6′}” special=”related”]<\/div>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]FINANCIAL HACKS & NEIGHBORHOOD NEWS<\/a>
<\/div>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]<\/i><\/div><\/div>FHA Loan vs Conventional Loan Comparison.<\/h1>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]
FHA Loan vs Conventional Loan Comparison.<\/h1>[\/vc_column][\/vc_row][vc_row][vc_column width=”1\/1″]<\/div>[\/vc_column][\/vc_row][vc_row full_height=”true”][vc_column width=”1\/2″]\nFHA Loans are a great option when you have less than 20% down payment.<\/span><\/h3>\nAre backed by the Federal Housing Administration, which allow down payments as low as 3.5%.<\/p>\n
FHA Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a low credit score.<\/li>\n
- The Federal Housing Administration (FHA) allows down payments as low as 3.5% for those with minimum credit score of 580 or higher.<\/li>\n
- The FHA will insure loans for borrowers with scores as low as 500, but requires a 10% down payment for a score that is that low.<\/li>\n
- Mortgage Insurance is required for the life of an FHA Loan and can’t be canceled.<\/li>\n
- DTI (debt-to-income) ratio 45% (can be as high as 50%)<\/li>\n
- 100% of down payment can be a gift<\/li>\n
- Allows down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][vc_column width=”1\/2″]\n
Conventional Loans are a great option When you have 20% or more down payment.<\/span><\/h3>\nAren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.<\/p>\n
Conventional Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a high credit score of 680 or higher.<\/li>\n
- Available in fixed-rates, adjustable rates (ARM’s) with loan terms 10 to 30 years.<\/li>\n
- Can be used to buy a primary residence, second home or rental property<\/li>\n
- Mortgage Insurance is cancelable when home equity reaches 20% (unlike FHA which lasts the life of the loan, in most cases)<\/li>\n
- DTI (debt-to-income) maximum ratio 43%<\/li>\n
- Only part can be a gift if down payment is less than 20%<\/li>\n
- Does not allow down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][\/vc_row][vc_row][vc_column]<\/div>[vc_column_text]<\/p>\n
Financial Hacks…<\/h1>[vc_column_text]<\/span><\/span><\/strong><\/a><\/p>\n
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\nFHA Loans are a great option when you have less than 20% down payment.<\/span><\/h3>\n
FHA Loans are a great option when you have less than 20% down payment.<\/span><\/h3>\nAre backed by the Federal Housing Administration, which allow down payments as low as 3.5%.<\/p>\n
FHA Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a low credit score.<\/li>\n
- The Federal Housing Administration (FHA) allows down payments as low as 3.5% for those with minimum credit score of 580 or higher.<\/li>\n
- The FHA will insure loans for borrowers with scores as low as 500, but requires a 10% down payment for a score that is that low.<\/li>\n
- Mortgage Insurance is required for the life of an FHA Loan and can’t be canceled.<\/li>\n
- DTI (debt-to-income) ratio 45% (can be as high as 50%)<\/li>\n
- 100% of down payment can be a gift<\/li>\n
- Allows down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][vc_column width=”1\/2″]\n
Conventional Loans are a great option When you have 20% or more down payment.<\/span><\/h3>\nAren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.<\/p>\n
Conventional Loan<\/span><\/h2>\n\n- This is the preferred home program for first-time home buyers with a high credit score of 680 or higher.<\/li>\n
- Available in fixed-rates, adjustable rates (ARM’s) with loan terms 10 to 30 years.<\/li>\n
- Can be used to buy a primary residence, second home or rental property<\/li>\n
- Mortgage Insurance is cancelable when home equity reaches 20% (unlike FHA which lasts the life of the loan, in most cases)<\/li>\n
- DTI (debt-to-income) maximum ratio 43%<\/li>\n
- Only part can be a gift if down payment is less than 20%<\/li>\n
- Does not allow down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][\/vc_row][vc_row][vc_column]<\/div>[vc_column_text]<\/p>\n
Financial Hacks…<\/h1>[vc_column_text]<\/span><\/span><\/strong><\/a><\/p>\n
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- \n
- This is the preferred home program for first-time home buyers with a low credit score.<\/li>\n
- The Federal Housing Administration (FHA) allows down payments as low as 3.5% for those with minimum credit score of 580 or higher.<\/li>\n
- The FHA will insure loans for borrowers with scores as low as 500, but requires a 10% down payment for a score that is that low.<\/li>\n
- Mortgage Insurance is required for the life of an FHA Loan and can’t be canceled.<\/li>\n
- DTI (debt-to-income) ratio 45% (can be as high as 50%)<\/li>\n
- 100% of down payment can be a gift<\/li>\n
- Allows down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][vc_column width=”1\/2″]\n
Conventional Loans are a great option When you have 20% or more down payment.<\/span><\/h3>\n
Aren’t backed by the government, offer down payments as low as 3% to first-time home buyers with good credit.<\/p>\n
Conventional Loan<\/span><\/h2>\n
- \n
- This is the preferred home program for first-time home buyers with a high credit score of 680 or higher.<\/li>\n
- Available in fixed-rates, adjustable rates (ARM’s) with loan terms 10 to 30 years.<\/li>\n
- Can be used to buy a primary residence, second home or rental property<\/li>\n
- Mortgage Insurance is cancelable when home equity reaches 20% (unlike FHA which lasts the life of the loan, in most cases)<\/li>\n
- DTI (debt-to-income) maximum ratio 43%<\/li>\n
- Only part can be a gift if down payment is less than 20%<\/li>\n
- Does not allow down payment assistance programs<\/li>\n<\/ul>\n<\/div><\/div>[\/vc_column][\/vc_row][vc_row][vc_column]<\/div>[vc_column_text]<\/p>\n
Financial Hacks…<\/h1>[vc_column_text]<\/span><\/span><\/strong><\/a><\/p>\n
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