96.5% vs 97% – Differences between FHA And Conventional Mortgages
For the last few years, FHA loans have dominated the low down payment space in the mortgage world. We are finally seeing some positive signs in Michigan that things are getting better. One of those signs is that conventional loans have loosened up and are now allowing a 3% down payment with PMI.
Let’s compare both programs to understand the benefits of each.
There is a belief that FHA appraisals have a higher property standard or that more repairs would be required. This is not true as conventional appraisers will be looking for many if not all of the same aspects of the home.
Call us for details as these programs and requirements are constantly changing. The good news is that the feel from lenders is the bottom of the housing cycle is clearly behind us.