Raise your hand if you know the difference between an FHA Loan and a Conventional Loan! Do you know which mortgage type is right for you?
Unfortunately, not ALL loans products are created equal! Having a variety of loan products provides buyer's with options, but smart consumers should know the differences in order to make an informed decision.
The table below outlines just a few key differences that borrowers should consider.
Middle FICO score of 580 to qualify
Middle FICO score of 620 to qualify
As high as 57% Debt-to-Income Ratio (DTI)
As high as 45% DTI
3.5% down payment
3% down payment
Mortgage Insurance Premium (MIP) for the life of the loan
Private Mortgage Insurance (PMI). Can be discontinued once the loan balance reaches 80% of the home's original value.
Up to 6% towards buyer's closing costs and prepaid items
Up to 3%
PROPERTY TYPE LIMITATIONS
Yes, limited to only owner-occupied
No, can be used for all properties and occupancy types
Author:Robin ONeal-Smith Phone: 214-245-9068 Dated: August 29th 2016 Views: 167 About Robin: ...
View our latest blog posts in your RSS reader. Click here to access.
WHO WE ARE
SCOTTIE SMITH II & ASSOCIATES is one of Dallas/Fort Worth’s fastest growing boutique brokerage firms. We are located in the historic Deep Ellum District of Dallas, Texas and focus on addressing the needs of home buyers, sellers, and investors. We do more than close real estate transactions; we help our clients build wealth and restore communities!
5 Surprisingly Smart Reasons to Buy a Home During the HolidaysiStock;
"Robin is an amazing realtor. So amazing that she turned into a friend during the process. She is always honest and straight forward. Say no more when it comes to buying a home! Robin is who you need in your life!"