The mortgage bankers association (mba. purchase applications rose around 5 percent, with increases for both conventional and government applications. The MBA’s refinance index decreased.

FHA loans are great for first-time homebuyers, but provisions like mortgage insurance can be costly. See if refinancing to a conventional loan.

For example, in deciding between an FHA loan and the Conventional 97, your individual credit score matters. This is because your credit score determines whether you’re program-eligible; and, it.

The FHA vs. conventional loan debate boils down to two big differences: credit score and down payment requirements. Here’s how to decide which loan is right for you.

For most mortgage borrowers, there are three major loan types: conventional, FHA and VA. Here is how they compare. Who they’re for: Conventional mortgages are ideal for borrowers with good or.

. loan program that keeps mortgage rates affordable and is insured by the Department of Veteran Affairs (VA). Qualified.

The application process is similar for both FHA-insured and conventional mortgages. A pre-approval from a lender is usually the first step in the loan application process.. Eligibility Eligibility for Conventional Loans. Most conventional loans require borrowers have a credit score of at least 620, and scores below 700 may lead to either extra fees or a higher interest rate.

pros and cons of fha loans vs conventional 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.

Conventional loans give the borrower more flexibility when it comes to loan amounts while an FHA loan caps out at $314,827 for a single family unit in lower cost areas, $726,525 in high cost areas. Conventional loans often do not come with the amount of provisions that FHA loans do.

FHA vs  Conventional. Which loan is better? A conventional refinance is the loan of choice for many homeowners in today’s market. While HARP and FHA have dominated the refinance market in years past, the standard conventional refinance is becoming the go-to option now that home equity is returning across the nation.

A 15-year FHA loan with 22% down payment gets you out of paying PMI, which can actually make the FHA loan cheaper than a conventional. When we bought our house in 2012, the best FHA loan was a 2.75% 15-year fixed (no PMI with 22% down), but the best conventional was over 3% for a 15-year fixed.

fha or conventional refinance The FHA offers a special refinance program called the FHA streamline refinance that requires very little documentation to get approved. If you currently have an FHA mortgage, the FHA streamline refinance may help you fast-track your efforts to lower your home loan payment – with fewer steps and less stress.