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Tampa, Florida FHA mortgages are popping. They’re excellent vehicles to bring new or first-time Tampa home buyers into home ownership, and they represent some of the best and most reliable fixed rate mortgage values on the market right now.

Trouble is, I find that a lot of borrowers have a hard time understanding exactly what makes Tampa FHA Loans different from Tampa Conforming Mortgages.  The purpose of this post is to provide some clarity here.

Credit Score Requirements: FHA vs. Conventional Mortgages

One of the key differences between conventional and FHA loans is that your credit score doesn’t have to be as rock solid as it does with a conventional loan.   The one thing potential Tampa FHA home loan borrowers need to keep in mind is this:

FHA backs mortgages because the borrower (you) has shown credit worthiness.  In short – you pay your bills on time, all the time.

The actual score is less important.  So, if you’re just starting out and have a score in the low 620s, but you’ve been consistent on all your bills, there’s a good chance you will still get approved for your FHA mortgage.

Conventional loans will require a much higher credit score to qualify than an FHA mortgage will.  You can still get a conventional loan with a moderate or lower credit score, but you’ll pay for it in a higher rate or in points, should you want to get your rate down to a desired level.

Down Payment Requirements: FHA vs. Conventional Mortgages

Another great thing about Tampa FHA loans is the fact that you’re required to put down considerably less cash than a with a conventional loan.  With FHA loans, you’re looking at 3.5 percent down, versus 20 percent down – on average – using a conventional mortgage.

On a related subject – future FHA loans can be made quite easy and very affordable for you in the future should you want to refinance.  By opting for an FHA streamline loan – a current Tampa FHA home loan borrower can move quite easily into a new mortgage a little to no out of pocket expense.