Larry Cragun over at the Seattle PI recently gave this useful overview of the differences between conventional and FHA loans:
Are you shopping for a home? When it comes to home shopping getting the right program may mean the difference between looking and buying.
Do you have concerns you might not be able to qualify? Do you have a loan you want out of, yet aren’t sure your situation is good enough? If so, you might want to talk to an FHA lender.
Sadly, FHA is not readily available to the mortgage community. The red tape, extra costs, and difficulties keep many good lenders from having it or wanting it. Another sad fact is that this lack of availability put some folks in sub prime loans when the could have closed FHA. In like manner some people don’t know they could buy now, and are not buying.