inception-app-prod/MGJlZDMxYjAtM2NlNi00MzQ2LThiMTQtNDRkYzg3YTE4YTBi/content/2021/03/cd8ef427-1c88-41bc-a2ce-7853223f3a471.png
#1 Individual agent at Remax Equity Group!
  • Home
  • About Lori
  • Listings Search
  • Communities
    • Vancouver
    • Battle Ground
    • Brush Prairie
    • Camas
    • La Center
    • Kelso
    • Ridgefield
    • Washougal
    • Woodland
  • Buyers
    • 4 Questions to Ask Before Buying
  • Sellers
    • What’s My Home Worth?
  • Blog
  • Contact
Lori Anderson-Benson
(360) 241-0199
Sign In
Sign Up
inception-app-prod/MGJlZDMxYjAtM2NlNi00MzQ2LThiMTQtNDRkYzg3YTE4YTBi/content/2021/03/cd8ef427-1c88-41bc-a2ce-7853223f3a471.png
#1 Individual agent at Remax Equity Group!
  • Home
  • About Lori
  • Listings Search
  • Communities
    • Vancouver
    • Battle Ground
    • Brush Prairie
    • Camas
    • La Center
    • Kelso
    • Ridgefield
    • Washougal
    • Woodland
  • Buyers
    • 4 Questions to Ask Before Buying
  • Sellers
    • What’s My Home Worth?
  • Blog
  • Contact
inception-app-prod/MGJlZDMxYjAtM2NlNi00MzQ2LThiMTQtNDRkYzg3YTE4YTBi/content/2021/03/cd8ef427-1c88-41bc-a2ce-7853223f3a471.png
#1 Individual agent at Remax Equity Group!
inception-app-prod/M2FkZTNlOTAtNWIwNy00M2EwLWI0OWEtZjAzNGIwNTg4NjY3/content/2017/09/Do You Know The Key Differences Between a Conventional%2C FHA%2C and VA Loan%3F .jpg

Do You Know The Key Differences Between a Conventional, FHA, and VA Loan?

inception-app-prod/MGJlZDMxYjAtM2NlNi00MzQ2LThiMTQtNDRkYzg3YTE4YTBi/logo/2019/03/2B5A4538_pp-2.jpg
Lori Anderson-Benson,04/19/2018

Are you scratching your head trying to figure out which type of mortgage is going to best suit your needs in Washington? For most borrowers, there are three major loan types: Conventional, Federal Housing Administration (FHA), and Veterans Affairs (VA). Here is some information on all three to help you decide which loan is perfect for you.

Conventional Loans

If you have great credit, a conventional loan could be your best bet and qualify you for the most competitive interest rate. If you have a credit score in the 700s, have a down payment of 5 to 20%, and have a low (less than 40%) debt-to-income ratio (the percentage of your monthly income allocated to debt, such as mortgages, credit card payments, or other loans).

With a conventional mortgage, you'll have fewer barriers to break down and can usually obtain one quicker than an FHA or VA loan

In addition to having a down payment, you will also likely need to have the cash to cover closing costs, lender fees, and mortgage insurance if you don't meet the minimum down payment requirement.

Federal Housing Administration (FHA) Loans


If you have a low credit score (lower than 600), a small down payment of around 3.5%, or if your mortgage payments will account for a significant portion of your paycheck, an FHA loan may offer you some flexibility.

The key differentiator with FHA loans is that the FHA provides insured mortgages, and doesn't actually lend money. As a borrower, you could be eligible to spend up to 57% of your total income on monthly debt obligations; such as your mortgage, auto loans, child support, and credit card payments.

The flexibility of FHA mortgages has some associated costs; 1.75% of the loan amount is due at closing, along with an annual fee, around 0.8%. If your financial situation improves or if you build equity in your home, the only way to eliminate these FHA fees is to refinance.

Veterans Affairs (VA) Loans

If you or a qualifying family member is active in the military, or a veteran, you could qualify for a VA mortgage with 100% financing. If you're the spouse of a military member who passed away while on active duty, you could also apply. There's no need to be a first-time buyer so that you can get a VA loan in the future as well. There's also no limit to how much you can borrow with a VA loan, but there are limits that may affect you based on your state and county, and how much of a financial responsibility you can handle.

A fundamental difference with VA loans is that the VA doesn't lend money, it backs the loans made by private lending institutions. You may still need cash for an earnest-money deposit, and closing costs. A seller is allowed to cover the closing costs, but it's not required. Additionally, if you're securing a VA loan for a primary residence, you won't require a down payment, but there's a cost of 2.15 to 3.3% that you (or the seller) will need to pay in advance. The good news is this fee can be rolled into the mortgage.


Not sure which type of loan you should apply for? We deal with all types of home buyers. If you have a question, please get in touch with your local Washington real estate agent.

Print Details
Previous post
Next post
Make The Most Of Your Vancouver Kitchen Space! 7 Time-tested Organizing Tips
How to Find Down Payment Assistance Programs

Have a question?

Send
Submitting
Succes! Your message was sent!
Oops! Error occurred.

Search listings

Enter city, zip, neighborhood, address…
Loading in progress…
No results found
Type in anything you’re looking for
Search

Office

REMAX Equity Group Realtors-Lori Anderson-Benson
7701 NE Greenwood Drive, Suite 100Vancouver
Washington 98662
360-828-2087
vancouverhomefind@gmail.com

Find the perfect home

  • Home
  • About Lori
  • Listings Search
  • Communities
  • Buyers
  • Sellers
  • Blog
  • Contact
  • Testimonials

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us.

© 2022 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reset.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Succes! Your message was sent!
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!
You may now log in into your account
Go to the homepage
Verify your email address
In order to log in to your account, you need to confirm your email address. Please check your inbox!
Go to the homepage

Share this listing

Copy Link