what is conventional loans between FHA loans and voe?

Asked by Sandy, Brenlan, Round Rock, TX Sat Jun 4, 2011

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Gregorio Den…, , San Diego, CA
Sun Jun 5, 2011
So many people misuse terms and quote things that are flat out untrue. A CONVENTIONAL loan is simply any loan that is not government insured. FHA, VA and USDA loans are non-conventional because they are government insured. FHA loans require 3.5% down payment with credit scores of 580 or above and 10% down with credit scores from 500 - 579. FHA mortgages do not have PMI, they have MIP which is usually more than the PMI for a conventional, conforming loan and an additional Up Front MIP that is usually financed into the loan balance. CONVENTIONAL loans DO NOT require 20% down as keeps being reported. A conventional loan can require as little as 3% down (Home Path). You can get non-HomePath financing on other properties with 5% down.

The confusion comes in with the terms CONVENTIONAL and CONFORMING. CONFORMING loans conform to Fannie MAe and Freddie Mac guidelines.

Thus:
FHA loans are non-conventional, conforming loans.
Most non FHA mortgages are conventional, conforming loans.
A Jumbo loan through a portfolio lender would be a conventional non-conforming loan.
A 5/1 interest only ARM is a conventional non-conforming loan.

A VOE is not your w-2s and 1099s it's what is ordered from your employer to verify what is on the W-2s and /or 1099s, it's usually Fannie Mae form 1005. There were programs in the past that just required a VOE in lieu of other income and employment requirements but this can be riddled with fraud and these programs (hopefully) have dried up. If there are still any out there I would avoid them.

To get accurate mortgage information, always consult a licensed loan originator.
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Melissa Krch…, , Rancho Cucamonga, CA
Sun Jun 5, 2011
I'm not sure what you're asking but I'm going to try to answer the question I think you're asking. FHA requires 3.5% downpayment and Conventional 20%. Most first-time home-buyers go the FHA route (because they don't have to save as much). VOE will be with your W2 or 1099's. A lender will be able to help you with that. Check out the link that I've attached for a list of three (3) that should be able to help you.
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Danny Tran, , Los Angeles County, CA
Sat Jun 4, 2011
Hi Sandy.

To answer your questions, The conventional loans is require 20% down, base on the purchase price. The FHA Loans you may down under 20% to 3.5% down with lower score it may go low as 580 Fico. It should met with Home ownership mandate, and it have to be full documents e...t..c..
The VOE program is that you have 20% down but does need Verify of Employee without full documents require

For more information and clearer please contact me at below

IRN REALTY
Danny Tran
1298 W. 7th st
Upland, Ca 91786
818-317-4698
Tranpomona@yahoo.com
0 votes
Veronica Mor…, Agent, Baldwin Park, CA
Sat Jun 4, 2011
The difference between an FHA and conventional loan is, FHA comes with Private mortgage insurance no matter what percent of down payment you come in with. Its also backed by HUD.Most loans are FHA in this economy, and only require a 3.5 percnt. A conventional loan is one not backed by HUD but by an investor and therefore you will need a bigger downpayment, usually more than 5 percent. Voe is a program used by banks to qualify a borrower, no documentation maybe required except verification of employment versus a Full doc loan, where financials and employment are verified. Voe comes with a higher price due to investor taking risk. FHA will always be full doc. Hope this helps!
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