Specialized In Jumbo Loans, Investor Loans, DSCR Loans, Non-QM Financing, Commercial Mortgages, and Tax-Informed Lending Strategies
Published By
David Ghazaryan
Owner / Broker / Banker
Contact Me At
(702) 766-3744
NMLS 1486726
Upfront vs. Monthly Insurance: FHA loans require a significant Upfront Mortgage Insurance Premium (UFMIP) of 1.75% that is financed into your loan, increasing your initial debt. Conventional loans only have a monthly Private Mortgage Insurance (PMI) payment and no upfront fee.
Insurance Cancellation: A major long-term advantage of conventional loans is that PMI is temporary and can be canceled once your home equity reaches a certain point (typically 20%). In contrast, FHA mortgage insurance (MIP) is often permanent for the life of the loan and can only be removed by refinancing.
Qualification Standards: Your financial profile determines your options. FHA loans offer more flexibility with lower credit score requirements (as low as 580) and higher debt-to-income (DTI) ratio allowances. Conventional loans are stricter, usually requiring a credit score of 620 or higher and a lower DTI ratio for approval.
Read the full blog article here: https://www.iqratemortgages.com/blog/houston-fha-vs-3-conventional-which-loan-is-cheaper
One loan has a monthly payment that never truly ends. I am David Ghazaryan. I structure loans that protect your future. FHA adds an upfront fee and a payment that lasts. The other loan lets you cancel that payment later on. This simple choice helps you build your family’s wealth faster. Find my full breakdown on social. Links are in description.
Read Blog Here: https://www.iqratemortgages.com/blog/houston-fha-vs-3-conventional-which-loan-is-cheaper
