FHA Mortgages vs. Conventional Conforming Mortgages

How do FHA Mortgages compare to conventional mortgages?
FHA Mortgages have several advantages over conventional mortgages. Conventional mortgages usually require a much larger down payment than FHA Mortgages do (Usually 20% down for conventional mortgages, 3.5% down for FHA Mortgages.) And, if you have less than perfect credit you may not qualify for many conventional mortgages and find yourself being offered mortgages with higher interest rates and/or fees than you expected. FHA-insured mortgages offer many benefits and protections that you won't find in conventional conforming mortgages including:

FHA Mortgages are Credit Flexible
FHA Loan Credit guidelines are not completely score driven. They are written in a way that provides the borrower the benefit of the doubt that there had been circumstances beyond their control in their past. Provided the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA Mortgage. A 620 FICO credit score is required to obtain an FHA Loan Approval through ENG Lending.

FHA Mortgages Carry Great Rates, Low Monthly Mortgage Insurance
Another advantage of FHA Mortgages, as compared to a conventional mortgages, is great interest rates and lower monthly mortgage insurance (MI). Standard FHA Mortgage interest rates are usually better than a conforming 30-Year Fixed mortgage.

FHA Mortgages Have Smaller Down Payments
FHA Loan Qualifications only require a 3.5% down payment and the money can be a gift from a family member, employer or charitable organization, which other programs don't allow.