I specialize in Kentucky FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; First time buyer $0 down still available with down payment assistance with KHC. Free Mortgage applications same day approvals. This web site is not endorsed by the FHA, VA, USDA, HUD or any other govt agency.Text/call 502-905-3708 email@example.com
NMLS#57916 Equal Housing Lender
Kentucky FHA Loans and Conventional Mortgage Loans
What is the difference between Kentucky FHA Loans and Conventional Mortgage Loans?
You know that two of the most popular mortgage options available are FHA and Conventional, but you no doubt have some clients who need help understanding each loan type’s finer details and benefits.
Here’s a quick, simple three-bullet comparison that you can provide for your clients:
Low down payments:
Both options feature low down payment options (eligible borrowers can put down as little as 3.5% for FHA and 3% for Conventional), but it can be easier to qualify for an FHA loan, as lower credits scores are accepted and there are less restrictive debt-to-income ratio requirements.
You can only use an FHA loan on a primary residence; a Conventional mortgage can be used for primary homes, vacation homes, or investment properties.
Mortgage insurance is required on all FHA loans, regardless of down payment size. You can avoid paying private mortgage insurance on a Conventional loan if you have a 20% down payment. But if you don’t, PMI drops after you reach 22% of your home’s equity.