pros and cons of fha loan

203K Conventional Loan Once you qualify, you can choose between two loan options: A limited 203(k) that finances repairs for up to $35,000, or the standard 203(k) for repairs of more than $35,000. The down payment . With a conventional mortgage, as long as you put 20% down, you can avoid paying private mortgage insurance (PMI).

Another edition of mortgage match-ups: “FHA vs. conventional loan.” Our latest bout pits FHA loans against conventional loans, both of which are popular home loan options for home buyers these days.. In recent years, FHA loans surged in popularity, largely because subprime (and Alt-A) lending was all but extinguished as a result of the ongoing mortgage crisis.

The ability to qualify for FHA mortgage is much easier than a conventional loan. A significantly higher credit score is needed compared to an FHA loan or other types of loans; This is one reason why so many people choose to work with a lender that can offer both an FHA loan and a conventional mortgage.

fha loans illinois FHA loans are a low down payment mortgage program and Illinois FHA loan limits are connected to local home values. Search the charts below to determine the maximum mortgage amount allowed for your county. FHA loan limits in Illinois are set at the floor amount of $275,665 across almost the entire state, except the Chicagoland Area.

One of the most popular mortgage products nowadays is the FHA home loan. FHA, which stands for the Federal Housing Administration, is a United States government agency which insures home loans for FHA approved lenders. A frequently asked question from home buyers relates to the PROs and CONs of FHA home loans. Many home buyers today are asking.

loan types fha A "loan limit" is the maximum allowable loan size for an area and, as another FHA benefit, FHA loan limits can be extended as conventional loan limits are. In Orange County, California, for.

FHA Loan Pros – FHA Mortgage Guide – Beginning January 1, 2014, new loan limits were put in place by the Federal housing administration (fha). While the current standard loan limit in areas with low housing costs will remain the same at $271,050, the new limit for the highest cost housing markets have been reduced from $729,750 to $625,500 for a one-unit property.

Understanding FHA Loans. To understand the pros and cons of an FHA loan, it helps to actually understand what it is and what it is not. Despite the name, these loans are not actually issued by the Federal Housing Administration (FHA); this is a mortgage loan that is issued by a private lender and insured by the FHA.

10 Vs 20 Down Payment we have 20% to put as down payment for a home but we’ll also need some cash for repairs. some say put the 20% down in order to avoid having to pay a monthly pmi (property mortgage insurance) on top of the 5,10 or 15% down, but some also say keep the cash and it’s okay to go the pmi route.

Between the paperwork, fees and seemingly endless phone calls to your lender, refinancing your home can be a major headache. If your mortgage loan is insured by the Federal Housing Administration, you may be able to avoid some of the hassle by applying for an FHA Streamline Refinance.You have to meet certain requirements to qualify and it helps to understand what to expect before you get started.