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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When determining the best mortgage option for buying a home, it can feel like you’re caught in a three-sided battle: conventional vs. FHA vs. VA. There’s no clear-cut winner of these home loan options, as each comes with its own set of qualifications, upsides and downsides. It all depends on your individual needs.
Conventional vs FHA vs VA loans
are common mortgage products readily available through banks, credit unions and online lenders nationwide. They’re typically a good fit for borrowers with good or excellent credit. FHA loans are government-backed by the Federal Housing Administration (FHA) and generally have more flexible qualification criteria than conventional loans. VA loans are also guaranteed by the federal government through the U.S. Department of Veterans Affairs (VA) and cater to active-duty military, veterans and surviving spouses. Before you begin comparing loan programs, it’s important to know three key pieces of information: How much How high your needs to be Whether you’ll have to pay any extra money for FHA loan vs conventional loan
A key differentiator between conventional vs. FHA loans is that a conventional loan has a higher credit score requirement than an FHA loan. FHA loans are generally a better fit for borrowers with lower scores. Another distinction: If you put down less than 20 percent on a conventional loan, you’ll have the ability to cancel the private mortgage insurance (PMI) once you cross the 20 percent equity threshold. With FHA loans, those pesky will remain in place until you pay the mortgage off or refinance into a conventional loan. CONVENTIONAL LOAN FHA LOAN