It depends on your circumstances... if you have 20% to put down, then conventional will be a better way to go since you wont have to pay an up front mortgage insurance premium, and you wont have to pay monthly mortgage insurance...if you have 5% or more it could still be better to go conventional even if you have to pay mortgage insurance, since their MI is cheaper... if however you don't have a lot of $$$ to put down, then FHA would be the better way to go since they only require 3.5% down payment.. however this question is best answered by your loan officer.. if you don't have one yet, then the best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com
It depends on your credit score and your downpayment. A FHA loan is beneficial for someone who has low credit and would like to put down less than 5%. If your credit is good and you want to put down more than 5% but less than 20% then you'll have to compare the rates and payment to see what is better. A downpayment that is less than 20% requires mortgage insurance and usually conventional MI is better than FHA MI, though FHA may have better rates.
That depends on each individual. The FHA requires 3.5% down payment and the conventional loan is 10% down or more. Yes, with 20% down, you avoid paying MIP (mortgage insurance premium). However, there are programs that you can use to assist you with down payment. It depends on the County you're purchasing the home.
If your score is over 680 I would recommend a 3% down conventional. Not every lender has this product so look for a LOCAL one that does on this forum. Depending on any GA state restrictions, the PMI can either be financed into the loan or paid by the seller. Far cheaper than FHA. One caveat, if you've had a bankruptcy/foreclosure/short sale there would be a waiting period of 4-7 years before you could qualify for a conventional loan. If you have little down payment FHA is generally more accepting of lower scores but have your loan officer run some comparisons of cash to close and payment. Good luck!
Really depends on your personal financial situation. The best way to find out is to sit down with a mortgage professional. A mortgage professional can work up the number both ways and then you can decide based on your financial needs. You can reach me at 757-390-7303 or apply online www.chesapeakemtg.com Michael Zimmerman nmls #924701
FHA, unless you have 20% down.
If your credit is 680+ you should go with FNMA as MI is lower and they will allow 3% down @ 680 + score. Good Luck
FHA is better. Easier to qualify and lower down payment. Please call me to discuss further. 478-330-6382 or apply at www.maverickfunding.com/SimonNwoke
Conventional is always better.
Conventional is always the best way to go if you have a 680 score or higher and 3.5% or more to put down. Give me a call at 678-455-0797 and I can give you a fee sheet so you can see why. Scott
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