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FHA Loan vs. Conventional Loan
Many
people believe that because they may have little or no credit, some
credit problems, or because they have limited resources for a down
payment that they are restricted to FHA financing. That is not true!
Until a borrower begins the pre-approval process he/she may not know
the programs for which they may qualify. Additionally, while in
some cases an FHA loan may have advantages, in other instances-
particularly when it comes to loan amounts, FHA financing may prove to
be too restrictive. If a borrower is self employed or in another
type of situation where proving income may be difficult, FHA is likely
to reject the loan application, while it may still be possible to
obtain conventional financing- even if the credit is not
perfect! To learn about the available options, please click the
button below and a loan officer will review your information without
obligation and discuss with you available options that fit your
needs.
APPLY NOW! No
Obligation!
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FHA |
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Conventional |
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Maximum
Loan Limits per County |
Yes |
|
No |
|
Mortgage
insurance included in loan |
Yes |
|
Not always |
|
*Maximum
purchase loan |
97% |
|
103% |
|
Rate
depends on Credit Score |
No |
|
Yes |
|
Seasoning
requirement for bankruptcy |
2+ yr |
|
None with
some programs |
|
Seasoning
requirement foreclosure |
2+ yr |
|
Depends on
program |
|
Open
Collections |
None |
|
Depends on
program |
|
Drop
mortgage insurance with equity |
No |
|
Yes |
|
Non-verified (stated) income programs |
No |
|
Yes |
|
Streamline
refinance |
Yes |
|
No |
|
Non-occupant cosigner |
Yes |
|
No |
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* There is a 102% FHA
program- 97% first mortgage and a 5% second mortgage.
Qualification for the 5% second mortgage though is based on low income
limits set per county. |
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*FHA rates are not
guaranteed lowest rates, and the rates will vary by lender. |
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Zero Down
(conventional) vs. 3% Down. (FHA) $200,000 Purchase Price*
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100%
LTV** |
97%
LTV |
|
Amount Financed |
$200,000 |
$194,000 |
|
Down
Payment |
$0 |
$6,000 |
|
Impounded Taxes (6 mos.) |
$0 |
$1,250 |
|
Impounded Insurance (2 mos.) |
$0 |
$113 |
|
Mortgage Insurance (2 mos.) |
$0 |
$336 |
|
PITI
Reserves (2 mos.) |
$0 |
$3714 |
|
Total Needed To Close |
$0 |
$11,413 |
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* The numbers
included here are for illustration purposes only, and may vary based
on borrower's payment history, annual interest rate adjustments,
etc. All programs, terms and rates are subject to change without
notice. Certain restrictions may apply. Contact licensed loan
officer for details.
** Borrower is
responsible for recurring closing costs only. |
First
time home buyers can qualify for the 100% Conventional Mortgage, and they
may even qualify for up to 103%!
Click
below to apply NOW!
Homely
today without obligation and
a
licensed loan officer will review your information and discuss your
options with you!
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