Sunday, July 28, 2013

FHA vs. Conventional Mortgage: Should I Refinance?

FHA vs. Conventional Mortgage: Should I Refinance?

When making this decision, it’s important to first understand the main differences between an FHA loan and a conventional loan. An FHA loan is guaranteed by the government and allows future homeowners to qualify without a large down payment on the home. The FHA might also be willing to work with people who have made credit mistakes in the past.

As with FHA loans, your current credit score will affect your personal loan rate. Additionally, in order to qualify for a conventional mortgage, you need to have at least 20 percent equity in your home and the funds for a down payment. Keep in mind that you won’t be able to cash out all of your home’s equity.



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