Question about what mortgage lenders can approve? Contact our loan agent in San Ramon.

Mortgage lender and home loan agent San Ramon

Loan Types: Conventional Vs FHA

If you’re a first time homebuyer, you’re probably confused about the different loan types like FHA loans and conventional loans.  We’ll go over the main differences, advantages and disadvantages of the loan types:

FHA Loans

FHA Loans are geared towards first time homebuyers, specifically.  The reason why is because the qualification requirements aren’t as strict.  This includes down payment, income and debt-to-income ratio requirements.  The qualifications aren’t as strict because you will be paying private mortgage insurance each month to ensure you don’t default on the loan.


  • You can put forth a down payment as low as 3.5%
  • Low minimum credit score
  • Easy to qualify


  • Private mortgage insurance (PMI) for the lifetime of the loan
  • Higher mortgage rates for jumbo loans

Conventional Loans

Conventional loans are typically for those who can afford to make a large down payment, who want flexibility in loan terms, or who want to buy a more expensive home than an FHA loan would allow.


  • No private mortgage insurance required with 20% down
  • Easy loan term changes


  • More stringent qualification requirements
  • Higher mortgage rates

Contact our home mortgage broker in San Ramon for home mortgage loan and mortgage refinancing.