Purchasing a house is not a simple task. It is the one of the biggest step that you may take in life. If you cannot afford to buy conventional house then you might look for mortgage loan to finance your house. You can choose between two loans that that are available, fha home loan and conventional loan. Fha home loan is a the loan that is insured by FHA while conventional loan is the loan under the current FNMA. In order to help people decide what is right for them, we will compare these two loans.

Apparently, fha loans have more advantages than conventional loans. FHA down payment is absolutely lower than the conventional loan down payment. It is three percent while the traditional loan is 5 percent. If you apply for fha home loan, you will get monthly mortgage insurance that is low. There is no credit score requirement. Besides that, you can get low closing cost.

The fha loan guidelines are considered more relaxed including less strict regulations, job requirements, debt to income ratios, and use of alternative credit. The interest rate that you get is lower as well. Once you see the explanation about fha vs conventional loan above, hope that you can make your decision.

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