Let’s Get Ready To Rumble!
Qualifying Standards
Generally, it is easier to qualify for an FHA than a conventional loan. The guidelines are not as strict regarding past bankruptcies and foreclosures . Also, FHA loans generally allow higher debt to income ratios and will approve people with a minimum credit score of about 620.
Round 1 – FHA
Down Payment Amounts
Generally a 3.5% down payment is required for FHA loans as opposed to 5-20% for conventional loans. With an FHA loan, 100% of this down payment can be gifted from a relative, which is not always true with conventional loans.
Round 2 – FHA
Private Mortgage Insurance (PMI)
PMI is required for conventional loan when the borrower puts down less than 20% of the home’s value. It can be canceled when the borrower has built up 20% equity in the home. FHA loans generally require PMI equal to .5% of the loan amount at closing, subject to an annual renewal fee of 0.5%. The FHA mortgage insurance remains in effect for a minimum of 5 years.
Round 3 – Conventional Loan
And the winner is… - only you can decide for sure. Whichever loan suits your current situation best is probably the winner for you. Just know that we are here to help you with any type of loan you may be interested in. Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.
If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!
I hope you have enjoyed this blog.
Until next time,
P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.
P.P.S. CLICK HERE to check out our FREE Credit Repair Program.
*This is not an offer to lend. 
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