1st time home buyer, which is better fha or conventional loan?
- dog maLv 71 decade agoFavorite Answer
FHA has higher fees and more restrictions on the property, but lower down payment and fairly lenient credit requirements. Conventional requires higher down payment and is likely tougher on credit, but does not require you to jump through quite so many hoops. If you have the ability, go with conventional.Source(s): former mortgage broker
- 1 decade ago
I am going with FHA since it only requires 3.5% down were the other is 10-20%. With FHA the downpayment can be a gift as long as you can trace it to someone. They do have restrictions so if you are looking to flip or for a rehab you would have to do a 203K first or get a conv.
I would also find a mortgage broker/lender or bank to see what each loan could offer you in terms of interest rate, mortgage amount...
Good Luck!Source(s): first-time home buyer and worked in real estate
- Sharon TLv 71 decade ago
Depends on many things: down payment, credit, selling price of house, etc.
If your bank makes mortgage loans, talk to a loan officer there and see what they offer. Then contact at least two other lenders for comparative options.
You need to shop for your financing just as carefully as you shop for your house.