Asked by: Guayre Gardellapersonal finance home financing
Can I get an FHA loan if I have a conventional loan?
Last Updated: 16th January, 2020
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In respect to this, can I have an FHA loan and a conventional loan?
A Federal Housing Administration (FHA) loan or FHA loan is insured by the federal government. Conventional loans can be harder to qualify for and require that the borrower have a higher credit score. FHA and conventional mortgage loans are the most common financing options for today's mortgage borrowers.
Furthermore, is it better to get a conventional loan or FHA? Conventional loans generally require that you have a FICO credit score of at least 620 to qualify, and a higher credit score is needed to qualify for the best interest rates. You can get an FHA loan with a down payment as low as 3.5 percent.
Keeping this in consideration, can you get an FHA loan if you are not a first time home buyer?
FHA loans are not for first-time buyers only. These repeat buyers may have little money for their down payment — even after the sale of their former home. The FHA will insure mortgages for any primary residence. There is no requirement that you must be a first-time buyer to use the FHA loan program.
What is the difference between a FHA loan and a conventional loan?
The main difference between FHA and conventional loans is the government insurance backing. Federal Housing Administration (FHA) home loans are insured by the government, while conventional mortgages are not.