What is better? An FHA or a Conventional Loan?

I have the option between an FHA loan and a conventional loan. Which one is better?

2 Answers

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  • 7 years ago
    Best Answer

    ASK whoever is offering you the option to explain the differences, costs & fees and docs

    Generally a conventional loan has fewer red tape issues

    To get conventional loan you need to put down 10-20%

    Putting down 20% avoids the substantial extra costs of PMI, and you grow your equity more quickly while paying LESS interest over the life of theloan

    Source(s): real estate imvestor
  • ?
    Lv 7
    7 years ago

    Conventional loan benefits are

    No PMI with 20% down

    No restrictions on the property you buy

    FHA is a lower down payment but you pay

    PMI and that is money down the drain since it does not go toward interest or principle

    Restricts you on the condition of the house you buy. Windows need painting then Loan denied.

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