Why Not FHA?

FHA loans are definitely in favor for first time homebuyers and others with limited funds for a down payment.

FHA loans are insured by the U.S Government against default by the borrower.

Conventional loans
are loans that are saleable to Fannie Mae and Freddie Mac, the two government-owned agencies. These loans are insured by Private Mortgage Insurers (PMI) when the down payment is less than 20%.

Interest rates for both types of loans are about the same.

A comparison of the major factors of

Conventional vs. FHA Loans:


The FHA Advantage  

Best if borrower has a low down payment of less than 10% and as little as 3.5% and/or buyer has low credit scores (usually <660).

The Conventional Advantage  

Mortgage Insurance is less expensive if down payment <20% and not required at all if >20%.  Investment properties allowed.


Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question
By checking the box, you agree that RTC Mortgage Corporation may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices.. Message/data rates may apply.