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FHA vs Conventional: Which Loan Is Right for You?

When you are in the home mortgage market, knowing all your options is important. Understanding the differences between a Federal Housing Administration (FHA) loan and a conventional loan is a good start. Ian Jouett (NMLS #320263), President of Louvier Mortgage Group, LLC (NMLS #1013945), explains, “Everyone’s situation is unique. So, when determining which type of loan is right for you, it is best to know the pros and cons of a conventional loan versus an FHA loan,”

FHA Loans

Because the federal government insures FHA Loans, they have more lenient lending criteria, allowing borrowers with lower credit scores to get approval and requiring smaller down payments. Because there is a higher risk for lenders for an FHA loan, they require a mortgage insurance premium (MIP) until the mortgage is paid in full.

Conventional Loans

The federal government does not back conventional loans. This means the underwriting criteria for loan approval require a higher credit score to qualify and a larger downpayment, usually around 20%. Because of these higher loan standards, mortgage insurance is generally not required.

For information on loans and mortgages, please contact:

Ian Jouett (NMLS #320263)

Louviers Mortgage Group, LLC

(NMLS #1013945)

Phone: (720) 851-1007

If you have any questions about selling or buying a home, don’t hesitate to contact Chadwick V.R. Williams at Denver Real Estate Professionals. We are happy to be a free resource for all your Colorado real estate needs.

Chadwick V. R. Williams,  SRES, CRS, GRI, SRS, Luxury Certified

Broker | REALTOR® | Property Manager



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