FHA versus Conventional loan
Hi! have a few questions. Here is our situation:
Own a condo(in Virginia). Our interest rate is currently at 6.25%, conventional 30 yr fixed. Fortunetly we put a lot down on the condo (or maybe not,lol) We paid $325,000, its now worth maybe 270 to 280,000. Still have $240,000 left to pay on it.
Furthermore, we are looking to buy a house in Spring 2010 in Maryland. And rent out our condo. Renting it out should be a piece of cake, were close to a metro, its in very nice shape, upgrades, blah blah,lol! The rent will cover the mortgage, but not the condo fees, insurance or property taxes.
We already have received our pre-approval amount to buy a new home.
Whats the difference between a FHA and a conventional loan? (pro's, cons)
Is it true that if we refinance our conventional mortgage (on our condo) with another conventional mortgage that we can't get a conventional loan for our new home for a period of one year?
One lender said above was true, another said he had never heard of that situation??