FHA or Conventional loan….which suits you?
Whether you are refinancing your existing mortgage or purchasing a new home, the 2 most popular mortgages are your FHA and Conventional loans. You may get two proposals to choose from…, but which one fits your needs the most and which can you qualify for? Conventional Loans: For the most part, conventional loans are backed
For the most part, conventional loans are backed by two of the government agencies, Freddie Mac and Fannie Mae. The general rule of thumb with these loans is that your LTV (loan to value) does not exceed 80 pct and is more of a “cookie cutter” loan, meaning that credit is strong and your debt to income ratio (DTI) is below 45pct. Other factors that will be looked at will be your mortgage history, past bankruptcies, foreclosures, and length of time at your current job or current profession.
