It is no secret that borrowers qualify for the kind of mortgage they need according to their financial health status. Conventional loans are the typical mortgage in the market, but some loans are insured and backed by the Federal Housing Administration. If you are in the middle of choosing between a conventional loan vs. FHA, here’s a brief overview of the two programs.
Both are home mortgages, but what are the differences between Conventional loans vs. FHA? Conventional loans.
FHA loans are ideal for low and mid-income borrowers. These loans are backed and insured by the FHA and granted by approved lenders. Borrowers with a poor credit history or those with little money for a downpayment can qualify for FHA loans, as the credit requirements aren’t as stringent as conventional loans. If the borrower falls below the 580 credit score, he can still be eligible for financing.