Are the requirment for the 3% down conventional option the same?

The Debt to income ratio is capped at 45% with conventional. while FHA is capped at 47% for housing and 57% for total debt. Credit requirements for conventional are also more stringent. If you would like to discuss further you can reach me at 631-360-0003RegardsNathan BaramCEOBest Rate Capital Inc. DBA BRC975 West Jericho Turnpike Suite 3 Smithtown NY 11787work:(631)360 0003cell: (631)525 1166Fax: (631) 574 3139www.BestRateCapital.comNMLSR#82064MLO NMLS ID#17296

Credit requirements are a little higher with 620 being the lowest allowable score for Fannie and the other big difference is the DTI is usually capped at 45% on Fannie as opposed to 55% on FHA

It really depends how strong your application is, for a stronger borrower (lots of factors) the 97% conventional will be a better option and also generally allows a higher maximum mortgage than FHA. Your loan officer should look at both options

Generally, you need higher credit scores for competitive pricing with conventional financing, but there's a huge benefit to use conventional. There is no upfront fee like with FHA, and the monthly MI is much less with Conventional.. plus, once you have 20% equity and have paid MI for 2 years, you can request that the MI be dropped.. this can be done without refinancing.. with FHA, the MI is for the life of the loan in most cases.. 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

If you qualify for a conventional loan I would suggest going conventional over FHA. The reason is due to the mortgage insurance. With FHA 1.75% of the base loan amount is added to your mortgage balance and the monthly mortgage insurance is higher than with conventional. Your interest rate will be higher with a conventional loan and you will need to keep your debt to income ratio below 45%, but in the long run you will see more benefits because once you have 20% equity in your property and after at least 2 years of being in that loan you can request from your lender to drop the mortgage insurance. There are even some mortgage insurance companies willing to accept a one time payment at closing to buy out of the mortgage insurance at closing as a one time fee. Contact a local loan officer and have them present you with all of your options so you can see the cost vs. benefit for each and that way you can make an informed decision. Best wishes, Sean

Conventional just announced going back to a 3% down payment options starting this month. It is so new, no lenders really have full guidelines just yet. You can expect guidelines to be tougher, as the smaller down payment does add significant risk. So if you have a little time to wait, you can expect lenders to have those guidelines soon. Then your loan officer can quickly and easily determine which one you qualify for, and what the down payment and over payment differences would look like. Lending in MN, WI, and SD - www.StPaul-Mortgage.com