(610) 964-1200

Loan Program FaceOff: Conventional Vs FHA

fha or fannie mae loanIf you’re a first time homebuyer, you’re probably confused about the difference between FHA loans and conventional loans.  We’ll go over the main differences, advantages and disadvantages of each loan type:

FHA Loans

FHA Loans are geared towards first time homebuyers, specifically.  The reason why is because the qualification requirements aren’t as strict.  This includes down payment, income and debt-to-income ratio requirements.  The qualifications aren’t as strict because you will be paying private mortgage insurance each month to ensure you don’t default on the loan.


·         You can put forth a down payment as low as 3.5%

·         Low minimum credit score

·         Easy to qualify


·         Private mortgage insurance (PMI) for the lifetime of the loan

·         Higher mortgage rates for jumbo loans

Conventional Loans

Conventional loans are typically for those who can afford to make a large down payment, who want flexibility in loan terms, or who want to buy a more expensive home than an FHA loan would allow.


·         No private mortgage insurance required with 20% down

·         Easy loan term changes


·         More stringent qualification requirements

·         Higher mortgage rates

Today's Low Rates

30 Year Fixed 3.875% 3.93%
15 Year Fixed 3% 3.06%
5/1 Arm 3.5% 3.672%
All rates shown with 0 points

Get Started Today