Topic: FHA Versus Conventional Loan
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Answers to Common Questions
What Is the Difference Between a Conventional & FHA Home Loan?
The FHA, or Federal Housing Administration, was founded in 1934 to help people purchase homes with small down payments. FHA loans are still an option and compete with conventional mortgages for borrowers' business. Read More »
Source: http://www.ehow.com/facts_5903914_difference-_amp_-fha-home-loan_...
How to Select Between FHA And Conventional Mortgage Loan
Once you have read my article on getting $8000 Tax credit on a home purchase, it is time to understand the details of mortgage that a bank will approve you. You can find the home purchasing articles at http://www.ehow.com/how_4789981_buy-ho... Read More »
Source: http://www.ehow.com/how_4800195_between-fha-conventional-mortgage...
Why Is an FHA Loan Better than a Conventional Loan?
An FHA loan is often a better option than a conventional loan because of its guarantee. An FHA loan is backed by the federal government, meaning that if the homeowner defaults on the loan, the federal government will pay the lender a portio... Read More »
Source: http://www.ehow.com/about_5127360_fha-loan-better-conventional-lo...
More Common Questions
Answers to Other Common Questions
Evaluate your down payment funds. FHA loans typically require a 3% down payment while most conventional loans requires 5-10% and sometimes more. Decide whether you are interested in foreclosures. In many areas, foreclosure holders will not ...
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Source: http://www.ehow.com/how_5322690_choose-fha-loan-conventional-loan...
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.
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Source: http://www.zillow.com/advice-thread/What-are-the-pros-and-cons-of...
One cannot directly convert a loan from one type to another. Rather, one must complete a refinance (in this case, without cash out) to move from a conventional loan to an FHA loan.
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Source: http://wiki.answers.com/Q/How_do_you_convert_a_conventional_loan_...
For a FHA loan, the credit qualifying criteria are not as strict as conventional loans. Down payment requirements are less, too.
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Source: http://www.chacha.com/question/what-is-the-doifference-between-a-...
More benefits for an FHA loan; main advantages of FHA over Conv: credit qualifying is easier for FHA; lower down payment with FHA
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Source: http://www.chacha.com/question/what-is-the-benefit-of-a-conventio...
The FHA doesn't lend you money, they guarantee the loan, so the lender doesn't take on a financial risk by extending you credit.
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Source: http://www.chacha.com/question/what-is-the-difference-between-a-f...
The Federal Housing Administration (FHA) offers a guarantee to banks who write loans that conform to their guidelines. Because the bank is guaranteed to be repaid in case the borrower has problems, the banks are willing to offer loans to pe...
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Source: http://www.trulia.com/voices/Home_Buying/What_is_the_difference_b...
