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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 |
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 |
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