why fha over conventional?

1 A definition.

Low- to moderate-income homebuyers can take advantage of the Federal Housing Administration loan.

A conventional loan is not insured by the government.

2.

A minimum credit score is required.

The minimum credit score is 500.

You must have a credit score of at least 600 to take a conventional loan.

There are 3. Initial payment.

If you have a credit score of at least 600, you can put down a 3.5% down payment on an FHA home. You have to make a 10% down payment if it's less than 590.

The minimum down payment for a Conventional Loan is 5% for the first homebuyers and 3% for those who are not.

There are 4. The interest rates.

The government insured the loan, so it has a lower interest rate.

The interest rate on the Conventional Loan depends on your credit score. The higher your credit score, the lower the interest rate.

5. There are loan conditions.

You can get a 15-year or 30-year mortgage on an FHA Loan.

A conventional loan can be used for 10, 15, 20, or 30 years.

6.

Loan limits.

The loan limit for FHA loans was $331,760 in 2020.

The limit for conventional loans is over $500,000.

The amount of the loan limit depends on the county in which you are buying.

7. The ratio of debt to income.

Debt-to-income ratio is the amount of debt you have to pay off each month. A high DTI could make it difficult to pay the bills.

Your DTI must be 50%.

If the mortgage approval is less than 43%, the mortgage approval is higher.

8. Occupancy requirements.

The primary residence for the next year must be the home you are buying with the loan.