FHA vs Conventional Home Mortgage? (1 Viewer)

[LDfan]

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

 

[Ashley Seymour]

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

 

[Tim Abbott]

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.

 

[Patrick Sun]

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.