Comparing Conventional &

FHA Financing

When purchasing a new home, there are several financing options to consider. Common options for financing include FHA and Conventional loans. Learning the differences between the two can be helpful in the decision-making process when it comes to financing.
FHA loans are typically used by first time home buyers, offering a better chance of obtaining financing and the program is government-insured. FHA loans will have easier credit standards when compared to a Conventional loan which can be helpful when the buyer has no credit or a lower credit score.

Advantages to FHA
FHA loans have a low down payment requirement of 3.5% and can provide approval for a low-credit score. FHA loans will typically have a lower base interest rate when compared to a conventional loan.

Advantages of Conventional Loans
With this loan type, only 3% is required for down payment and mortgage insurance is only required for loans that exceed the 80% loan to value ratio. Mortgage insurance must be included in an FHA loan, no matter the loan to value ratio.

 

        Call, text, or email me today

      Brian Steeby Realtor, St. Joseph, MO

      816-344-3376

      briansteeby@kw.com

 

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