FHA Home Loans vs. Conventional Loans

What kind of mortgage might work best for you?

Dig deeper into the details so you can make the right choice.

A conventional mortgage direct from Philadelphia Federal Credit Union? Or a government-backed Federal Home Administration loan? Given your financial profile, you might qualify for one or the other - or both. If you're new to home-buying - and even if you're not - it's worth taking the time to compare loan types and understand the key differences.

 

Loan Details 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 costs up to 9% depending on down payment.

2% maximum for investment properties

Seller can assist with closing costs up to 6%.
Property Locations All states except NY, ND, ID & MO All states except NY, ND, ID & MO
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 & 5/6 ARM, 7/6 ARM (Adjustable-Rate Mortgage) Fixed Rate
WANT TO KNOW MORE?

Get insights on FHA loans from our experienced professionals by calling our Mortgage Department at 215-934-3500 or 800-832-PFCU.

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