How Do You Choose Between An FHA Loan And A Conventional Loan?
FHA vs. Conventional Loan. It’s a choice almost all potential home buyers must make when they get ready to shop for a mortgage. Take these steps to help you decide which loan type is best for you and your family. 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 consider offers made by buyers planning to pay with FHA loans. Check the interest rates. FHA loans usually have reasonable interest rates, but if you have good credit you may be able to find much lower with a conventional loan lender. Over the long term, this lower interest rate could more than make up for a higher initial down payment. Evaluate your work history. FHA loans require two years of steady employment to qualify. Conventional loans aren’t all quite so strict. Check whether you currently owe the government any money. If you have st
