Seller Concession On Conventional Loan There are conventional loans that are available for first time home buyers that provide grants and incentives, and also other conventional loans that allow a buyer to eliminate mortgage insurance. A buyer who is putting the minimum 5% down on a conventional loan is able to receive up to 3% in seller concessions.conventional loan vs. FHA Loan. The disadvantage of an FHA loan is expensive mortgage insurance, which is paid upfront as well as in monthly installments. Conventional loans are cheaper overall but require good credit. Mortgage insurance may also be required with conventional loans if a down payment is below 20%, but pricing for this is usually better than for FHA loans.
Understand the differences between the leading Loan types, eligibility, credit guidelines and everything you need to know to get a FHA, Conventional, USDA and VA loan. Evaluate Loan Types FHA vs CONVENTIONAL vs USDA vs VA Types of Loans CONVENTIONAL V.
VA Loans vs FHA Loans. VA Loans are almost identical to most conventional loans, only they offer many extra benefits such as: no down payment requirements, lower qualifying credit scores and loan fees can be packaged into the mortgage.