Conventional Loan Pros Lower minimum down payment requirement (3%). No mortgage insurance requirement if 80% LTV or lower. Can cancel existing mortgage insurance at 80% LTV. Can be used on all property and occupancy types. Many more loan program options. Can hold numerous conventional loans..
Going with a conventional loan has some advantages, but it's a good idea to weigh all the pros and cons before making a move.
High Down Payment. Conventional loans require higher down payments, typically about 20 percent as opposed to as low as 3.5 percent for some FHA loans.
FHA Loans vs. Conventional Loans. It may not always seem clear whether to apply for a FHA loan or conventional loan. FHA loans have typically been known as loans for first-time homebuyers, filled with extra paperwork and complexity since it’s a government-insured program. But borrowers can use multiple FHA loans for purchasing or refinancing a home loan.
I Own My Home Outright And Need A Loan I have NO mortgage payments on my home at all. I own it completely. But, I need a home improvement loan. I am 52, & live on a fixed income. I have poor credit, I think. What type of loan do I get?Difference Between Loan And Mortgage