Difference between FHA Conventional Mortgages

Looking for a mortgage to purchase your home but don't understand the difference between an FHA and a conventional mortgage? First, you should always work with a mortgage loan officer that you trust, who is able to explain these differences and answer any of your questions. There are a couple of differences between FHA and conventional mortgages, the first being that FHA loans are guaranteed by the government while a conventional loan may require private mortgage insurance to protect the lender against default. Second, an FHA loan has a lower downpayment requirement than a conventional loan; in fact you can purchase your home with as little as 3.5% down. Lastly, the credit requirements are often less strict with FHA than a conventional loan. FHA and conventional loans may have different interest rates and an FHA loan requires that you pay an upfront mortgage premium. Therefore, the loan that is best for you will depend on your particular situation. Visit http://www.mortgage411center.com to learn more about mortgage loans.