Louisiana Mortgage loans, Texas mortgage refinancing, Alabama fha loans, and specialize in Baton Rouge mortgage loans, FHA lending, Louisiana refinance and finding Real estate homes for sale.
FHA Loan INFORMATION - With an FHA loan, the Federal Housing Administration does not actually loan the money, but insures loans that are financed by other lenders. While FHA insured loans were often considered part of the subprime market, there are many benefits and almost anyone can qualify. If you need information on FHA Mortgage Insurance, Contact us today.
Baton Rouge Mortgage Loans
FHA Loan INFORMATION - With an FHA loan, the Federal Housing Administration does not actually loan the money, but insures loans that are financed by other lenders. While FHA insured loans were often considered part of the subprime market, there are many benefits and almost anyone can qualify. If you need information on FHA Mortgage Insurance, Contact us today.
Baton Rouge Mortgage Loans
FHA VS Conventional Loans - Compare Loans
Posted 12-23-2009 at 01:54 PM by mortgage_loan
FHA vs. Conventional Loan Financing
FHA - Rates are lower than Conventional
The main advantage to FHA home loans is that the credit qualifying criteria for a borrower are not as strict as conventional financing.
FHA will allow the borrower who has had a few "credit problems" or those without a credit history to buy a home.
FHA was created by the federal government to provide affordable housing financing for qualified borrowers. FHA provides 100% of the loan, the lender eliminating risk. The borrower pays an initial insurance premium, which is approximately 1.5% of the loan amount. This amount can be absorbed directly into the loan amount. The borrower also pays a monthly premium of .5% of the loan amount divided by 12 months. FHA requires deposit of 3%. This money can be a gift. No reservations are necessary. Closing costs can be funded in the amount of the loan.
FHA Loan Borrowers must provide proof of income sufficient to demonstrate the ability to pay the mortgage. FHA guidelines are more relaxed, for example, a bankruptcy, which was unloaded at least 2 years, the use of other forms of credit (utilities, cable TV, auto or medical insurance premiums, caring for children, school fees, furniture or appliance store accounts) Place of traditional credit, and higher ratios of debt to income. FHA interest rates are extremely competitive with conventional rates.
Fannie Mae conventional loans are loans made at the risk of the borrower, without the benefit of any warranty insurance or government. A conventional mortgage with a LTV (loan to value ratio) of more than 80% requires primary mortgage insurance, which can be paid monthly. The borrower must have 5% of its own funds for the payment and 2 months reserves of the deposit.
Closing costs should be paid by the borrower. requirements for a conventional loan include an excellent candidate to credit, job stability with sufficient income, a significant down payment, and a low debt to income. Borrowers who meet Fannie Mae guidelines are rewarded with an interest rate slightly lower than an interest rate FHA.
Conventional mortgage lenders (Fannie Mae, Freddie Mac) actually allow their borrowers with good credit to remove the mortgage insurance if the remaining loan is less than 80% of the house appraisal. On the other hand, FHA Loans does have several schemes in force for foreclosure protection to help homeowners who are in trouble to continue afford the mortgage installments. This can be very useful if you are worried about future financial hardships.
Louisiana Mortgage Rates
Credit Repair - Mortgage Loan Blog
FHA - Rates are lower than Conventional
The main advantage to FHA home loans is that the credit qualifying criteria for a borrower are not as strict as conventional financing.
FHA will allow the borrower who has had a few "credit problems" or those without a credit history to buy a home.
FHA was created by the federal government to provide affordable housing financing for qualified borrowers. FHA provides 100% of the loan, the lender eliminating risk. The borrower pays an initial insurance premium, which is approximately 1.5% of the loan amount. This amount can be absorbed directly into the loan amount. The borrower also pays a monthly premium of .5% of the loan amount divided by 12 months. FHA requires deposit of 3%. This money can be a gift. No reservations are necessary. Closing costs can be funded in the amount of the loan.
FHA Loan Borrowers must provide proof of income sufficient to demonstrate the ability to pay the mortgage. FHA guidelines are more relaxed, for example, a bankruptcy, which was unloaded at least 2 years, the use of other forms of credit (utilities, cable TV, auto or medical insurance premiums, caring for children, school fees, furniture or appliance store accounts) Place of traditional credit, and higher ratios of debt to income. FHA interest rates are extremely competitive with conventional rates.
Fannie Mae conventional loans are loans made at the risk of the borrower, without the benefit of any warranty insurance or government. A conventional mortgage with a LTV (loan to value ratio) of more than 80% requires primary mortgage insurance, which can be paid monthly. The borrower must have 5% of its own funds for the payment and 2 months reserves of the deposit.
Closing costs should be paid by the borrower. requirements for a conventional loan include an excellent candidate to credit, job stability with sufficient income, a significant down payment, and a low debt to income. Borrowers who meet Fannie Mae guidelines are rewarded with an interest rate slightly lower than an interest rate FHA.
Conventional mortgage lenders (Fannie Mae, Freddie Mac) actually allow their borrowers with good credit to remove the mortgage insurance if the remaining loan is less than 80% of the house appraisal. On the other hand, FHA Loans does have several schemes in force for foreclosure protection to help homeowners who are in trouble to continue afford the mortgage installments. This can be very useful if you are worried about future financial hardships.
Louisiana Mortgage Rates
Credit Repair - Mortgage Loan Blog
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