FHA offers 3.5 percent down where conventional is 5 percent. Seems FHA is the way to go...... Wrong. FHA has a 1.75 up front monthly insurance fee and an additional monthly insurance as well. 3.5 plus 1.75 is now 5.25 which is higher then the 5 percent.

On top of that you have a higher monthly rate on FHA then conventional. Conventional you can get rid of at 80 percent whereas FHA come April 1 good luck removing it all together.

in my opinion and mathematically FHA is not the way to go but rather conventional.

Please call me for more specific details. Chris Beard 310-351-9441. (CA and WA loans)