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FHA vs. other loans
This entry was posted on 9/19/2007 9:46 PM and is filed under Products.
Which loan is right for you how do you know whether FHA or conventional Fannie or Freddie is the best for you. Where here is a quick guide to help you make your decision.
FHA max loan amount will depend on your area and currently in a few areas the max they will lend is $362,000 however should Congress and the current administration pass legislation FHA might be able to lend up to two times that loan limit.
FHA will carry mortgage insurance on all transaction except for 15 year loans where your loan amount is less than 89.99% of your homes value.
FHA closing costs are about the same as conventional financing the only difference is you end up paying up front mortgage insurance on FHA equal to 1.5% of the total loan amount.
FHA will allow you to borrower depending on your credit profile up to 95% of your homes value for cash out. Conventional Fannie Mae and Freddie Mac will cap you at 90%. Other companies that portfolio their loans can go up to 100%.
FHA appraisals are not as difficult as they used to be so chances are same rules apply for all loan types.
If your total loan amount is less than 80% and you qualify for a loan other than FHA that sells to Fannie Mae or Freddie Mac take this loan as you will not have to pay mortgage insurance.
Rates really are not any different for FHA vs other conventional financing.
Welcome to Mortgage Medicine, the Mortgage Blog for homeowners. Mortgage Medicine is a Mortgage Blog written by a Mortgage Professionals. The focus is to provide you with a information
on Mortgage Loans, Mortgage Rates, Credit, and Real Estate. This mortgage blog will look to give you insite in questions to ask as you refinance and try and inform you to the mortgage loan process.
We hope that by educating you that the next time you look to refinance, you are better equipped to handle and understand which loan is best for you.
About Me
Hi, I am Michael Paul, owner of Directmortgageloans.com as well as author of this blog Mortgage Medicine. I started this site to provide homeowners,who were looking to
refinance,information on which mortgage loan is right for them and what questions to ask their mortgage broker. Information on this site relates to the following topics: refinancing your home,
purchasing a new home, credit card information, Interest rates, appraisals, FHA Home Loans, and Foreclosures, Home Equity Loans, FHA Secure, FHA vs Fannie Mae, Freddie Mac, Subprime Loans, and Prime
Rate.
