COMPARING FHA WITH CONVENTIONAL MORTGAGES

CRITERIA

Minimum FICO credit score
Minimum down payment
Mortgage insurance

CONVENTIONAL MORTGAGES

Typically no lower than 620
As low as 3 percent, but 5 to 20 percent is typical
Monthly payments are required if you have a down payment of less than 20 percent, but generally, the insurance can be canceled when your loan-to-value ratio reaches 80 percent.

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FHA MORTGAGES

Typically as low as 580
As low as 3.5 percent
Upfront and monthly payments, sometimes for the duration of the mortgage term, are required.

HOME READY COMPARISON TO FHA

 
 

BENEFITS

Required down payment

Cancellable mortgage insurance*

Immediate appraisal orders from lenders

Free from geographic restrictions on loan amounts

Day 1 Certainty™ freedom from reps & warrants available

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HOMEReady

3%

Yes

Yes

Yes

Yes

FHA

3.5%

No

No

No

No

CONVENTIONAL VS. FHA VS. VA LOANS:
A SIDE BY SIDE COMPARISON

 

CRITERIA

Minimum down payment requirement

Minimum credit score requirement

Upfront mortgage insurance fee

Suitable for

CONVENTIONAL

3% of purchase price; at least 20% to avoid private mortgage insurance (PMI)
620
None (a monthly PMI fee applies with less than 20% down)
Borrowers with excellent or good credit

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FHA

3.5% of purchase price 
580 with 3.5% down; 500 with 10% down
1.75% of the loan amount upfront, plus a variable annual fee
Borrowers with high DTI or low credit scores

VA

0% 
No minimum
Upfront VA funding fee of 1.25% to 3.3% of the loan amount
Veterans, military service members and spouses

 

How We Compare

When It comes to fees and costs, NewMark says NO

FEES CHARGED

Application Fee

Doc Prep fee

Loan Commitment Fee

Origination Fee

Processing Fee

Registration Fee

Underwriting Fee

BANKS

Yes
Yes
Yes
Yes
Yes
Yes
Yes

LENDERS

Yes

Yes

Yes

Yes

Yes

Yes

Yes

NEWMARK

NO
NO
NO
NO
NO
NO
NO