FHA loan vs. Traditional home loan: Which suits you? Whenever mortgage that is exploring, it is likely you’ll learn about Federal Housing management and traditional loans. Let’s see, FHA loans are for first-time house buyers and old-fashioned mortgages are to get more established purchasers — is it? Really, the distinctions between FHA loans and main-stream mortgages have actually narrowed in past times years that are few. Since 1934, loans fully guaranteed because of the FHAn are a go-to selection for first-time house purchasers simply because they function low down re re payments and credit that is relaxed.