FHA loan vs. conventional mortgage: Which is right for you … – NewsChannel5.com


When exploring mortgage options, it’s likely you’ll hear about Federal Housing Administration and conventional loans. Let’s see, FHA loans are for first-time home buyers and conventional mortgages are for more established buyers — is that it? Not necessarily. Actually, the differences between FHA loans and conventional mortgages have narrowed in the past few years. Since 1934, loans guaranteed by the FHAn have been a go-to option for first-time home buyers because they feature low down payments and relaxed credit requirements. But conventional loans — which are not insured by a government agency like the FHA, the Department of Veterans Affairs or the U.S. Department of Agriculture — have gotten more competitive lately. Both types of loans have their advantages. Here are the factors to consider when deciding between an FHA and a conventional mortgage.

Jason Meyers

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