Conventional loan vs FHA loan underwritting

It will depend on your credit score, debt ratios, and amount of down payment you will need. FHA is great for borrowers with less than perfect credit and only 3.5% down. Typical Conventional loan will require at least 5% down and may have a higher rate. Everything will depend on your credit score. Call me for a free consultation. Matt Spinn 512-663-5515; NMLS 212443, Gold Financial Services NMLS 1072201

For the most part, underwriting is very similar.. the major difference in conventional vs. FHA is credit.. if you have good credit and 5% down, your far better off going conventional.. the monthly mortgage insurance is much lower.. if you have bad credit then FHA will probably be a better way to go.. understand that FHA does not lend money, they only insure loans against default, so the lenders will oftentimes add their own guidelines above what FHA requires.. so FHA says minimum credit score is 500, where the lender will say 620 or higher.. but regardless, there are lenders who offer FHA down to 580, and a few even lower.. also understand that the lower the credit score, the more strict the lenders guidelines will be, and few that apply will actually get approved.. my suggestion is to let a local mortgage broker look at your complete scenario and once he see it, they will guide you to the right loan product for your exact situation. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

It all depends on the weaknesses in the file, if income/DTI is over 45% then FHA would be more favorable. Its hard to say which is easier its on a case by case basis.