What is the difference Between FHA,
VA and Conventional loans
FHA loans: These loans are backed by the Federal Housing Administration and are designed for borrowers with low to moderate income. They typically require a down payment of just 3.5% and have more lenient credit requirements than conventional loans.
VA loans: These loans are backed by the Department of Veterans Affairs and are available to eligible military veterans and active duty service members. They typically require no down payment and have more lenient credit requirements than conventional loans.
Conventional loans: These loans are not backed by the government and are offered by private lenders. They typically require a larger down payment, typically 5-20%, and have stricter credit requirements than FHA and VA loans.
Each type of loan has its own unique benefits and limitations, and it's important to understand the differences before making a decision. For example, FHA loans may be a good option for first-time homebuyers with limited funds for a down payment, while VA loans may be the best option for veterans and active duty service members. On the other hand, conventional loans may be the best choice for borrowers with good credit and a larger down payment.
