Conventional financing vs FHA -which one makes more sense? For many, it’s a question that can be answered by your income and credit.
You need a minimum of 3% down on a conventional loan, 3.5% on FHA.
Your credit score can be lower with FHA – as low as 580.
If you have had a foreclosure in the last 7 years, you will need to go FHA – then you need at least 3 years since the foreclosure.
With FHA, the mortgage insurance doesn’t go away.
Talk to your loan officer and decide which makes for sense for you. If you are in multiple offers, conventional financing may be a better offer but if you can’t get approved for conventional financing, it’s not the end of the world. If your credit score is high, your mortgage insurance may be much lower with a conventional loan. If you have student loans, it can affect how much you qualify for, especially with FHA loans. Both are good loans, both have their benefits!! Decide which is better for you and once you are approved, you can start house shopping!!
Leslie Vanderwerf, NMLS ID#335509, AMEC Home Loans, An Equal Housing Lender, NMLS#150953 – Email – Website
