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Unlike conventional loans, FHA loans are insured by the Federal Housing Authority (FHA). They also must be offered by an FHA approved lender who will make sure that you meet the qualifications. The decreased risk from the loan due to the backing allows FHA loans to be offered to people that otherwise would not qualify for a traditional conventional loan. Read More

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Some mortgages are backed by the government to encourage the lender to give mortgages to a broader range of people. Conventional loans, however, are not backed by the government and thus are more difficult to qualify for. A minimum credit score of 620 is usually recommended but having a score above 740 will tend to provide you the best interest rates. While you can get a conventional loan with a down payment as low as 3%, putting down over 20% will prevent you from having to pay PMI, private mortgage insurance. Read More