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Fha Conventional Loans

Thanks to his less than stellar credit, interest rates on conventional loans we shopped were higher than expected at 4.5% or more. The interest rate with an FHA loan? Just 3.125%. That rate is enough.

FHA loans have ongoing mortgage insurance premiums in the range of 0.45% to 1.05% of the loan balance per year, which is competitive with the private mortgage insurance (PMI) conventional borrowers.