FHA vs Conventional Loans. Which one is better?
By Shashank Shekhar, San Jose, CA Mortgage Broker/Lender
If you are asking the question - FHA vs Conventional Loans, which one is better? You are not alone. I was speaking at an FHA seminar for real estate agents in Fremont, CA recently. The topic was "How FHA loans are playing a big part in qualifying more First Time Home Buyers". At the end of the presentation, I was asked this question - "Are FHA loans really better than conventional". I had similar questions asked by Buyers and Real Estate agents in other forums too. There is no black & white answer to it - because it all depends on your situation. Below, I have compiled a table to compare the loan features of both the programs. As you would see depending on your specific situation, either one could be better. ** Since I wrote this post FHA Up front Mortgage Insurance Premium (UFMIP) requ...