About This Video
Choosing the wrong mortgage can cost you thousands of dollars over the life of your loan. Before you put an offer on a house, here are the 5 major differences you MUST know:
1. Down Payment: FHA requires 3.5% down (or as low as 0% with Down Payment Assistance). Conventional starts at 3% for qualified buyers.
2. Mortgage Insurance: FHA has an upfront 1.75% fee + permanent MIP for the life of the loan. Conventional has NO upfront fee, and PMI drops off automatically once you reach 20% equity.
3. Debt-to-Income (DTI): FHA offers more flexible qualifying guidelines if your debt ratio is higher.
4. Credit Hardships: FHA is much more forgiving with shorter waiting periods after past bankruptcies or financial setbacks.
5. Loan Limits: Conventional generally allows higher loan limits depending on your local county.
💡 The Bottom Line: Need more qualifying flexibility? FHA might be your ticket. Have solid credit and want to save money long-term? Conventional is usually the winner.
📲 Not sure which one fits your situation best? Contact Lock It Mortgage today for a free and no-pressure consultation! Let’s run your numbers together!
Disclaimer: This is not a commitment to lend. All loans are subject to borrower qualification, property eligibility, and underwriting approval. Rates and terms are subject to change without notice. Additional terms & conditions apply.
