Comparing pros, cons, rates, mortgage insurance and the viability of other programs (conventional Fannie Mae or Freddie Mac) is essential to finding best fit. For FHA financing, the MIP.





You just need to weigh the pros and cons first.. interest rates on conventional loans we shopped were higher than expected at 4.5% or more.

Let Us Get a Summary on FHA vs Conventional Loans. SHARE. A pros and cons list helps when debating about FHA versus conventional loans. Below are the.

CONVENTIONAL LOANS Pros of Conventional Cons of Conventional: PMI will automatically drop off at 22% equity. This will typically take around 9.25 years unless more principal is paid than required. Minimum 3%-5% down payment. Typically lower monthly PMI than FHA. Only loan that allows financing of an investment property (minimum 15% down).

A conventional loan is a mortgage that is not backed by the federal housing administration (FHA) and the Department of Veteran Affairs (VA). Conventional loans.