Conventional and Government Issued Loans

Dear Ali, 

Buyers looking to purchase a home have several loan options available to them. Two of the most common are conventional and government issues loans, which each have their own advantages and disadvantages.

1. Conventional Loans 

Conventional loans are issued by private financial institutions. Their terms are based on the borrower's financial history and the qualification guidelines stipulated by the lender. Conventional loans typically have many options available in terms of mortgage rates, properties to buy, and refinancing options. Buyers who qualify for conventional loans will find that they have more properties to choose from, as well as greater flexibility in their monthly premiums.

2. Government Issued Loans 

Government issued loans (also called FHA loans) are insured by the Federal Housing Administration against default. Because of this, they often have less stringent measures for qualification, enabling more people to buy a home. However, FHA loans have more restrictive housing standards and lower loan limits.

If you're curious about the best type of loan for you, I'm here to chat anytime!

Best regards, 

Anna Smith