The main difference between a FHA Loan and a Conventional Home Loan is that a FHA loan requires a lower down payment, and the credit qualifying criteria for a borrower is not as strict. This allows those without a credit history, or with minor credit problems to buy a home. FHA requires a reasonable explanation of any derogatory items, but will use common sense credit underwriting. Some borrowers, with extenuating circumstances surrounding bankruptcy discharged 3-years ago, can work around past credit problems. However, conventional financing relies heavily upon credit scoring, a rating given by a credit bureau such as Experian, Trans-Union or Equifax. If your score is below the minimum standard, you may not qualify.
We are committed to offering low mortgage rates while providing superior customer service every step of the way!
Company NMLS: 2333675
CA Finance Lenders Law License:
60DBO-163991
www.nmlsconsumeraccess.org
26 Via Nerisa
San Clemente, California 92673
Phone: (949) 201-6998
raysaggar@newpointhomeloans.com
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