FHA vs Conventional Home Mortgage?

Discussion in 'After Hours Lounge (Off Topic)' started by LDfan, Apr 22, 2003.

  1. LDfan

    LDfan Supporting Actor

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    Hi All,
    What's the big difference between these 2 types of mortgages? I'm currently in a FHA mortgage but am considering refinancing.
    Is there any real advantage to staying with FHA? I always had the impression that since FHA is from the government it's better.

    Thanks,
    Jeff
     
  2. Ashley Seymour

    Ashley Seymour Supporting Actor

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    An FHA mortgage will require that you carry mortgage insurance. A conventional loan will not require it with sufficient equity in your home.
     
  3. Tim Abbott

    Tim Abbott Second Unit

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    Ashley is correct. Also, FHA mortgages usually have a slightly higher rate than a conventional mortgage. Not much, maybe a .25% higher, but you always want to save as much as you can.
     
  4. Patrick Sun

    Patrick Sun Moderator
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    But, typically, you don't have to put as much down (like 3% vs. 5%) on a FHA loan as you would a conventional loan.
     

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