FHA Loan vs. Conventional Loan: How -2-

This independent regulator provides oversight, regulation and oversight of the housing mission for Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

Credit union loans tend to offer competitive rates and terms in addition to flexible loan criteria and if the credit union is FHA approved, you can get an FHA loan. Credit unions also offer conventional loans. If approved, the lender makes direct payments to the seller while the owner makes installment payments over a predetermined period of time.

What is a USDA loan?

Like FHA loans, USDA loans are government loans, although they are offered to rural homeowners by the United States Department of Agriculture; unlike FHA loans, which require minimal down payments, USDA loans may require no down payment.

What is a VA loan?

Meanwhile, VA loans are backed by the US Department of Veterans Affairs, but are provided by private lenders such as banks and mortgage companies. Similar to USDA loans, they don’t require a down payment, but are intended for borrowers who have served in the military, are currently serving in the military, or have eligible military spouse status.

What is a conforming loan?

Conforming loans are the same as conventional loans and follow Fannie Mae and Freddie Mac guidelines.

-Alisa Wolfson

 

(END) Dow Jones Newswire

10-11-22 1049ET

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