As a first-time homebuyer, choosing a mortgage type is one of the steps in your homeownership journey. Two popular loan options are FHA and Conventional, each with distinct features. Your dedicated Loan Team can help you determine which might be best for your unique situation, but here’s a high-level look at the different options, if you qualify.
Key Features of FHA Loans
An FHA loan is backed by the Federal Housing Administration, and may be a popular choice for first-time homebuyers, as it offers accessible terms that can make getting into a home more attainable, if you qualify.
- Possible lower down-payment : FHA loans may allow for down-payments as low as 3.5% of the home’s purchase price.
- Credit score requirements: FHA loans may come with lower credit score requirements. Oftentimes, this is seen as an attractive attribute for first-time homebuyers who may not have a long history of established credit.
- First-Time Buyers: FHA loans may be tailored to those who may not meet the stricter requirements of conventional loans, providing a great entry point for qualified new homeowners.
Key Features of Conventional Loans
Unlike FHA loans, Conventional loans are typically offered through a private lender, such as a bank or credit union. Conventional loans come with a variety of options, offering flexibility in terms that can help qualified buyers tailor the loan to fit their financial plans.
- Flexible loan terms: Conventional loans may offer options for both fixed and adjustable rates, allowing you to select a term that aligns with your long-term plans.
- Private mortgage insurance flexibility: Even with a down-payment of less than 20%, conventional loans may allow you to cancel private mortgage insurance once when your loan balance is below 80% of your home’s original value.
- Conventional loans may offer qualified buyers access to the best rates and the most flexible loan terms on the market.
Your Pulte Mortgage Loan Team can walk you through each of these loan options and more, depending on what’s available and your qualifications. Both FHA and conventional loans can be excellent paths to homeownership, so whichever route you take, you’re on the way to making your dream of homeownership a reality!
Ready to make your homeownership goals happen? Learn more about the Pulte Mortgage process!
