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?
- chatsplasLv 77 years agoBest 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 theloanSource(s): real estate imvestor
- ?Lv 77 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.