Right now, FHA home loans are incredibly popular, with the most common loan offered being the 203(b) loan for home purchase. Many borrowers like FHA loans due to their extremely lenient credit requirements and relatively low interest rates. While FHA loans do have a lot of benefits, many borrowers choose to go with conventional loans, such as Fannie Mae loans, Freddie Mac loans, or other privately-insured mortgages.
FHA-insured loans, including the flagship FHA 203(b) loan, are some of the most popular loans on the market due to their low interest rates and a variety of other benefits. However, FHA loans aren’t the only affordable loans out there; Fannie Mae loans also offer an attractive option for many homebuyers. In this article, we’ll look at the benefits and drawbacks of both FHA and Fannie Mae home financing to help you decide which type of home loan is best for your specific needs.