When exploring mortgage options, itâ€™s likely youâ€™ll hear about Federal Housing Administration and conventional loans. Letâ€™s see, FHA loans are for first-time home buyers and conventional mortgages are for more established buyers â€” 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 â€” which are not insured by a government agency like the FHA, the Department of Veterans Affairs or the U.S. Department of Agriculture â€” 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.
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