How to decide between a conventional v/s FHA loan?
I am trying to decide between these 2 loan types and am confused with which one to go with.
Option 1:
Conventional 30 Year fixed..
Loan amt: 560K
Rate : 4.875 with 1 point & 10% down
Add $450 to monthly payment for PMI
This option requires 10% and may require us to come up with around 10K – 15K at closing meaning more liquid cash at closing. Stricter guidelinesielines. Allowup toly upto 36% Debt to Idon’te (dont quote me on this)
Option 2:
FHA 30 year fixed
560K (but add 1.75% to loan amt) = ~570K
Rate: 5.25%
and add 0.55% per month as Mortgage Insurance.
This may allow us to roll closing costs into the loan amount. Looser credit guidelines. Allows upto 50 Debt to Income. Not sure if the monthly payment reduces after 78% Loan to value (or 5 years) with this option.
So folks.. can anyone help me decide between the two? Also, I plan to stay in this house long term so any help will be appreciated.
Traditionally FHA loans have been for people with bad credit. Everyone else would do better getting a conventional loan. The conventional loan fees are less. The FHA has upfront and monthly mortgage insurance. The conventional won’t have that “double whammy”.
FHA also tend to have more “miscellaneous fees” so you pay more in the final accounting.
But FHA allows a lower down payment and only you can decide how much you can drain your bank account in order to own a home..
FHA GUIDELINES WILL CHANGE JULY 14
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Fha Hospital Mortgage Insurance Program $14.4 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications… |
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Fha Multifamily Housing Mortgage Insurance Program $14.4 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications… |
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To Improve The Financial Safety And Soundness Of The Fha Mortgage Insurance Program. $12.88 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications… |
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An Act To Improve The Financial Safety And Soundness Of The Fha Mortgage Insurance Program. $12.88 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications… |
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