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Compare FHA and conventional mortgages. Loans guaranteed by the Federal Housing Administration, or FHA loans, aim to make buying homes more affordable for low- to middle-income families, with relaxed lending standards, down payments as low as 3.
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Although bank loans may offer lower interest rates, those loans are not typically as short-term or as easily approved, which means comparing the two is like comparing apples to oranges. Paying back your loan installments can help you out financially by improving your credit score.