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: 148 About Robin: ...
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