Putting 20% down for FHA

You would still need to pay mortgage insurance with an FHA loan. If you have the 20 percent down, you should also consider a conventional loan. Is there a reason you are leaning towards an FHA loan?

All FHA loans have an upfront MI premium and a monthly premium, regardless of how much you put down. Also, in most instances, the monthly MI is for the life of the loan, and the only way to remove it would be to either refinance into a loan product other than FHA, or pay it off.. FHA is intended for borrowers with limited cash reserves and allows for lower down payments.. these lower down payment loans are more risky than loans where someone puts 20% down.. for this reason, FHA has a very expensive MI premium.. You're far better off going conventional if you have 20% to put down.. even though the rate will be higher, the overall payment will be lower and you wont have to pay MI.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com