Here are some questions to ask yourself when choosing between a government loan and a conventional loan.

1. C H O O S I N G B E T W E E N
A G O V E R N M E N T
L O A N A N D A
C O N V E N T I O N A L
L O A N
MORTGAGE.INFO

2. S S T O C K T O N
C A F E
T H E
G O V E R N M E N T L O A N V S
C O N V E N T I O N A L L O A N
E.g. FHA or VA
Offers flexible terms, attractive rates, and a
guarantee for the lender should you default in the
future.
CONVENTIONAL LOAN
GOVERNMENT LOAN
From private lenders
Does not offer the same guarantee, but sometimes
has more attractive rates and terms depending on
the risk level of your loan file.

3. S S T O C K T O N
C A F E
T H E
Q U E S T I O N S T O H E L P
Y O U D E C I D E
more restricted in what they can offer
have to stick to the mainstream loans and
requirements
DO YOU WANT A COMMERCIAL
OR PRIVATE LENDER?
COMMERCIAL
PRIVATE
make their own rules
provide you with the opportunity for a unique
loan program tailored for your needs

4. S S T O C K T O N
C A F E
T H E
Q U E S T I O N S T O H E L P
Y O U D E C I D E
FHA Loan ­ 3.5% minimum
VA Loan (for qualifying Veterans) ­ zero to 3%
HOW MUCH DO YOU WANT TO
PUT DOWN ON THE LOAN?
ZERO TO 3.5 PERCENT DOWN PAYMENT
10 TO 20 PERCENT DOWN PAYMENT
Consider going the conventional route, whether from a
private or mainstream commercial lender as long as you
have a good credit score and decent debt ratio to allow
you to qualify.
Get a Government Loan

5. S S T O C K T O N
C A F E
T H E
Q U E S T I O N S T O H E L P
Y O U D E C I D E
You will have an easier time finding a lender that can
bend the rules for you a little bit based on your
compensating factors.
DO YOU HAVE SPECIAL
CIRCUMSTANCES?
IF YES, GO WITH CONVENTIONAL LOAN
WHY NOT GOVERNMENT LOANS?
They have very strict guidelines because the FHA and VA back them up.

6. S S T O C K T O N
C A F E
T H E
Q U E S T I O N S T O H E L P
Y O U D E C I D E
because a private lender does not have the same level of
funding the government does.
WHAT TYPE OF INTEREST RATE
DO YOU NEED?
A GOVERNMENT LOAN HAS A HIGHER TENDENCY
OF PROVIDING YOU WITH A LOWER RATE THAN A
PRIVATE LENDER MAY BE ABLE TO OFFER
This is not to say that government loans always have lower interest rates than private
lender loans, though; you should shop around to see which loan has the best rate for you
given your circumstances.

7. S S T O C K T O N
C A F E
T H E
W E I G H T H E P R O S
A N D C O N S O F E A C H
T Y P E O F L O A N Y O U
A R E A B L E T O A P P L Y
F O R A N D M A K E
Y O U R D E C I S I O N
F R O M T H E R E .

8. S S T O C K T O N
C A F E
T H E
CLICK HERE
TO LEARN MORE
LENDER HOTLINE: 888­581­5008
INFORMATION ORIGINALLY PUBLISHED APR/7/2016

9. MORTGAGE.INFO
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10. Justin McHood is Americas Mortgage
Commentator and has been providing
Mortgage commentary for over 10 years.
INFORMATION PROVIDED BY:
Justin McHood
MORTGAGE.INFO