What’s the difference between an FHA insured mortgage and a VA guaranteed mortgage?

Posted on Aug 22, 2012 in FHA Information

Question by : Should i use a Conventional or FHA loan?
My fiance and i plan to buy a townhome sales price is 115, here medical 000.We have 5000 to put as a downpayment. Which passes for the 3.5% requirement for FHA loan. But should we just get the conventional loan instead to get a better mortgage rate? I have good credit of 770 and he has 605. We can’t put 10% or 20% down to avoid pmi so we were thinking we get two loans instead using downpayment assistance from the housing partnership of northeast florida. Which do you think we should chose??
For closing cost his job has a matching program for first time homebuyers in which for every $ 1 we contribute they match by $ 5. no repayment after 5 years

Best answer:

Answer by sassy2
The conventional loan is better in that there are no restrictions of the condition of the house you are buying.
But you cannot get two loans. Those days are over. All you can afford is the FHA loan. Your down payment will be 4025. What will you use for closing costs? They can run as much as 6k. Do not think you can afford being a home owner at this time

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A couple of nice mansion pictures I found:

Berclair Mansion in Bee County, visit this site Texas – berclairmansion10
Image by mlhradio
Berclair Mansion, approved Bee County, this web Texas. Built in 1936 in the tiny whistlestop town of Berclair on southeast Texas, made completely of steel, cement and brick – and some say it is haunted.

Often the areas you discover purely by accident are better than the planned trips. Even though driving back from a ho-hum trip to the Battle of Coleto battleground memorial, I drove by means of the tiny town of Berclair. Positioned along Highway 59 (future Interstate 69) just north of Beeville, the town was settled in the late nineteenth century as a railroad quit to serve the local ranchers, and was rumoredly named right after a rancher couple, Bert and Claire. Although by no means a significant center of commerce, Berclair thrived till the Wonderful Depression, and like many modest Texas towns began a lengthy, slow decline. Till recently, Berclair had dwindled down to many dozen residents and fading memories.

Just off to the left was a old abandoned developing in an open field (the school), and behind that a grand two-story mansion. The gate was open, and the sign by the highway says it was accessible for functions and events the constructing out back (originally the servant’s quarters) was now a fancy Mexican restaurant.

I had run across a few other related mansions scattered about Texas over the past year – these grand, fancy homes seemingly out-of-location in tiny, backwater, fading Texas towns. Off the top rated of my head, I recall the Bel-Asher in Asherton, the Ruckman Mansion in Helena, the Swalinski Property in Falls City. Quite incongruous to locate a mansion stuck in the middle of a town of little, broken-down and abandoned properties.

Checking on the internet later, I learned the history of the mansion. Berclair was built in 1936 by a local rancher’s widow, Etta Terrell, to house herself and her four aged spinster/widowed sisters. The original house that was built on that place had burned to the ground, so she vowed to develop a new home that could not burn. When it was finished, the Berclair Mansion encompassed 22 rooms, built entirely of steel, concrete and brick.

They lived in the mansion till the last sister died in 1968, when it was willed to a niece who refused to live there, and built a house next door rather. When she died in 1998, she instructed that the mansion and all its contents were to be destroyed – but the state intervened, and a year later the mansion was provided to the Beeville Art Association.

What they discovered inside was fairly amazing – the mansion was filled with rare 16th and 17th century antiques, furnishings and artwork imported from Europe. Hidden in a closet was a painting that everybody thought was lost to the globe – sold for ten million dollars at auction, a lot more than enough to spend for the extensive renovations.

And if you do a search on Google, 1 of the big topics about the mansion is that it is haunted. Landscape workers reported seeing a tiny old lady at the window waving hello every single morning sounds of moving furnishings or music playing behind closed doors things found in various places.

Tours of the mansion are available when a month by reservation – now that I know, I am so there. Also obtainable for dinners, weddings and other events (pretty cheap, also). Images taken March 7, 2009.

For much more info, links:
Official Internet site, tons of pics
Scarlett On the web – go to description
Caller-Occasions investigates ghosts

Far more wonderful houses click here…

Mansion on a hilltop
Image by Nagesh Kamath
How would it be to have a mansion on a hilltop?! Have to be entertaining… but then I can’t imagine the amount of work it should take to keep the location… shudder…

For more houses click right here…

Glenview Mansion
Image by Mr. T in DC
Glenview Mansion is comprised of a stone 1926 classical revival mansion, which incorporated the original 1830s residence of a prominent Maryland lawyer and judge, Richard Johns Bowie. In 1957, the mansion and grounds were donated to the city of Rockville, and are presently employed for specific events and as a cultural and arts center. The address is 603 Edmonston Drive.

Far more excellent homes click right here…
ot spare Republican Platform Mortgage tax deduction Cuts
… Mortgage interest deduction for decades had. “Romney, visit this the presumed Republican presidential candidate, has proposed lowering corporate and individual income-tax rate and the elimination of some tax breaks, without specifying which. A Romney …
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high development costs to the test
From California to Maine, the amount that is spent on low-income tax credit (LIHTC) and other affordable housing properties under increasing political and public scrutiny. … One respondent as opposed to a cap, said: “A cap could do something unique …
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In April, President Obama brought national attention to the issue of student loan interest and hope Presidential Mitt Romney also stated that he has the benefit of lower rates. … After businessinsider.com, 10 percent of graduates from four …
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Question by : What’s the difference between an FHA insured mortgage and a VA guaranteed mortgage?
And what roles does PMI (private mortgage insurance) play in a market where FHA insurance and VA guarantees exist?

Best answer:

Answer by MVD34
Different agencies guaranteeing the loan. Different qualifications for getting a loan. All in contrast to a conventional loan or a jumbo or private loan without PMI.

VA is for military veterans only. Very generous terms, check generally higher fees over the life of the loan.

FHA is a federal guarantee for qualified applicants by income, house, housing area, and loan amount. As with VA the approval terms are more generous, but the fees are higher.

PMI is required for conventional loans when the buyer (you) has less than 20% of his money in the deal as measured by current market value.

What do you think? Answer below!

4avg.rating 11 votes.


  1. Among other things, who they target (low income vs. vets) and whether or not the down payment can be funded (yes, for a VA loan).

    PMI is only for conventional loans. You still have to buy mortgage insurance, on FHA loans, but not VA loans. VA loans tend to have higher rates, and conventional loans, the lowest rates.

  2. An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium (MIP) equal to a percentage of the loan amount at closing is required, and is normally financed by the lender and paid to FHA on the borrower’s behalf. Depending on the loan-to-value ratio, there may be a monthly premium as well
    A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued by qualified lenders.

    The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment. Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near metropolitan or commuting areas of large cities