The term Traditional Loan applies to all present FNMA as well as FHLMC lending limits. Most people often associate FHA loans with getting funding transactions even though the purchases are mostly common use loans which are offered at a certain percentage.
We will now take a look at some glaring differences between FHA and traditional loans:
The biggest benefit of getting FHA loans is the fact that the qualifications for a potential borrower are not very rigid as it is the case with standard bank loans. The down payment and the equity are also pretty low.