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What is the difference between an FHA loan and a regular loan. How would I know which is better for me?

by yukjmh492 from Glenwood Springs, Florida. Mar 6th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

I'm not sure what you mean by "regular loan".. Conforming loan products are basically comprised of FHA, VA, USDA, and Conventional. For VA, you must have VA benefits available to you.. For USDA, you have to buy in a USDA approved area... they all have varying minimum down payment requirements.. Some have monthly mortgage insurance, some don't.. FHA has monthly mortgage insurance which in most instances, you pay for the life of the loan. Also, there's an upfront premium which can be financed. These charges are there regardless of how much you put down. Conventional has monthly mortgage insurance and the premium varies based on your credit score and the amount you put down.. And once you have paid for a minimum of 2 years and once you have 20% or more equity, you can request to drop the MI.. and with conventional, there's no upfront MI charge. I could go on, but as you can see there are many different loan products, and many different options.. I suggest you reach out to a local mortgage pro and let them look at your complete loan profile.. once they see your complete scenario, they can advise you properly.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 6th 2018
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