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Independent voices from the The Washington Times Communities
Topic - Gregg Busch
Whether you are a first-time buyer, a repeat buyer or a homeowner interested in refinancing, you'll need to choose between conventional financing and an FHA-insured loan.
If you save your money, avoid credit-card and other debt and pay all your bills on time, you may assume you have a stellar credit score. You might be wrong.
Decades ago, consumers who wanted to buy a home had to meet with their local banker, prove they had the income and assets required to purchase property and make a substantial down payment before obtaining approval for a home loan. Today's homebuyers may have the option of making a lower down payment, but they face a more complex mortgage-approval process.
"The biggest reason people choose an FHA loan over a conventional loan is that you only have to make a down payment of 3.5 percent on FHA loans," said Gregg Busch, vice president of First Savings Mortgage Corp. in McLean. "However, conventional loans are now available to borrowers with a down payment of 3 percent if you have good credit."
The maximum allowable loan for conventional financing is $625,500, but Mr. Busch said borrowers must make a down payment of at least 10 percent to be approved for a conventional loan of more than $417,000.