Which Mortgage Is For You

Which Mortgage Is For You

FHA vs. CONVENTIONAL LOANS!

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. Financing Available



FHA    

CONVENTIONAL

CREDIT SCOREMiddle FICO score of 580 to qualifyMiddle FICO score of 620 to qualify
INCOMEAs high as 57% Debt-to-Income Ratio (DTI)As high as 45% DTI
DOWN PAYMENT3.5% down payment3% down payment
INSURANCEMortgage Insurance Premium (MIP) for the life of the loanPrivate Mortgage Insurance (PMI). Can be discontinued once the loan balance reaches 80% of the home's original value.
SELLER CONTRIBUTIONUp to 6% towards buyer's closing costs and prepaid items Up to 3%
GOVERNMENT BACKEDYesNo
PROPERTY TYPE LIMITATIONSYes, limited to only owner-occupiedNo, can be used for all properties and occupancy types




Robin ONeal-Smith Headshot
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Phone: 214-245-9068
Dated: August 29th 2016
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