|
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. |
|
| |
FHA |
|
Conventional |
| Maximum
Loan Limits per County |
Yes |
|
No |
| Mortgage
insurance included in loan |
Yes |
|
Not always |
| *Maximum
purchase loan |
97% |
|
107% |
| Rate
depends on Credit Score |
No |
|
Yes |
| Seasoning
requirement for bankruptcy |
2 yrs |
|
None with
some programs |
| Seasoning
requirement foreclosure |
2 yrs |
|
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 |
| |
|
|
|
| *
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. |
| *FHA
rates are not guaranteed lowest rates, and the rates will vary by
lender. |
Zero Down
(conventional) vs. 3% Down. (FHA) $200,000 Purchase Price*
| |
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 |
First
time home buyers can qualify for the 100% Conventional Mortgage!
Click
below to apply NOW!
|
▼ Take
Advantage of Some of Our Latest Home
Purchase Products!
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|
Apply
today without obligation and
a
loan officer will review your information and discuss your
options with you!
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|
