FHA vs Conventional Loans: What’s the Best Choice for You? Jamie Johnson. August 17, 2019 Mortgage. If you’re a first-time homebuyer, you may be wondering whether an FHA or conventional loan is the right choice for you. The loan that is best for you ultimately depends on your financial.
FHA loans are not available for second homes or investment properties. In most counties, the FHA loan limits are less than conventional loans. FHA Loans and Mortgage Insurance. Mortgage insurance is an insurance policy that protects the lender if the borrower is unable to continue making payments.
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.