What is the differance between a Conventional loan and an FHA loan?
A FHA loan typically allows buyers to purchase a home with less down payment than a conventional loan. The current down payment as of January 1, 2009, is 3.5% of the purchase price. FHA loans are not as strict, as far as credit worthiness is concerned. Money for the down payment can be gifted from relatives. Income can also be counted from non-occupying co-borrowers.
