FHA Home Loans vs. Conventional Mortgages
Based on your needs and financial status, you may qualify for a conventional mortgage, FHA Home Loan, or both. So, which is better for you? Review the chart below to understand the key differences between a Conventional Mortgage and an FHA Loan, including the requirements, down payment, and rates.
|
Conventional Mortgage |
FHA Home Loans
|
| Down Payment |
3%
All of the funds can be a gift from a family member |
3.5%
All of the funds can be a gift from a family member |
| Minimum Credit Score |
Varies by loan program |
Varies by loan program |
| Rates |
Rates are determined by the lender based on guidelines/credit criteria. |
Rates are determined by the lender based on guidelines/credit criteria. |
| Mortgage Insurance |
Private Mortgage Insurance is required with less than 20% down. |
Upfront mortgage insurance premium can be added into the loan + monthly mortgage insurance premium. |
| Property |
Can be primary, investment, or secondary residence |
Primary residence only |
| Sellers Assistance |
Seller can assist with closing cost up to 9% depending on down payment.
2% maximum for investment properties |
Seller can assist with closing cost up to 6%. |
| Property Locations |
In all 50 states |
PA, NJ, DE, & MD |
| Terms |
Up to 30 years |
Up to 30 years |
| Loan Limits |
Loan limits vary based on # of units, county, etc. |
Loan limits vary based on # of units, county, etc. |
| Products Offered |
Fixed Conventional & 5/1 ARM (Adjustable Rate Mortgage) |
Fixed & ARM Programs |
| |
Conventional Mortgage Details |
FHA Home Loans Details |
Want to talk to someone?
Call our Mortgage Department at 215-934-3500 to talk with a PFCU Mortgage Professional.
FHA guidelines are reviewed by CU Members Mortgage Loan Officers at 800-607-3474.