FHA Mortgage Rates vs Conventional!

Which Type of Loan Works Best for You?

Take a look at the Mortgage Rates today. Notice the “30 Yr Fixed” is at “6.07%”. This is commonly known as a Conventional Loan. However, the “30 Yr FHA” is @ 5.74%”. 

Why would you want to use a Federal Housing Administration (FHA) versus Conventional Loan? It comes down to personal preference. 

With a Conventional Loan, you will need 20% to escape from paying Private Mortgage Insurance (PMI). If you put less than 20%, you will have PMI, but you can have the PMI removed once you have 80% Loan to value (LTV).

With FHA, you will have Mortgage Insurance (MI) no matter how much of down payment you place. 

Now, I personally like FHA Loans because the requirements for Credit, Debt to Income (DTI) and other items are less stringent than Conventional Loan.