Conventional? FHA? What loan is best for Me? My friend purchased his home with a Conventional loan, should I do the same? Looking to purchase a home – You have probably asked yourself some of these same questions. Lets look at FHA and Conventional loans as different situations require different types of loans.
Both types of loans have their advantages. You might have heard that FHA loans are the go-to-loan for the first time home buyer since it features very low down payment options and allow for more flexible qualification requirements. FHA Loans were created by the Federal Housing Administration and insured by this government agency.
Conventional loans are becoming much more competitive. With two types of Conventional loans, Conforming and Non-Conforming, it gives you more flexibility when it comes to your loan amount. Conventional loans usually do not come with as many provisions as that of an FHA loan.
It is best that you talk over the advantages and disadvantages of each type of mortgage with your loan officer. They will help you better understand which is the best loan option for You. Although you might choose to live in the same neighborhood as your friend, you might not choose the same loan program. We look forward to talking with you about the best loan for Your next home.