Conventional and FHA loans are two common paths to home financing, and each has distinct considerations. Understanding the basics can help you decide which program may fit your situation.
What is a conventional loan?
A conventional loan is a mortgage not backed by a government program. Eligibility and terms are based on the lender's underwriting guidelines, the borrower's qualifications, and the property.
What is an FHA loan?
An FHA loan is insured by the Federal Housing Administration and may offer options for borrowers who meet the program's requirements. FHA loans have their own guidelines separate from conventional financing.
How to choose between them
The right choice depends on your financial situation, the property, and your goals. Factors to consider include the loan program's requirements, the property type, and your long-term plans. Ramzi can help you compare options for your circumstances.
Loan approval is not guaranteed. All loans are subject to application, underwriting, credit approval, property review, program guidelines, and applicable state licensing requirements. Rates, terms, loan programs, and availability are subject to change without notice. This is not a commitment to lend. This article is for educational purposes only and is not financial, tax, or legal advice. FBT Bank & Mortgage is an Equal Housing Lender.
