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Are there any real disadvantage(s) of taking out an FHA loan vs conforming loan?

There is the one time UFMIP and then the monthly MIP which goes on for about 5 yrs or so depending on LTV. For example in terms of viewing a property and you have an FHA loan is there a stigma attached that may put off a seller/agent. Just wondering.

Cheers.

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May 17 2009 - Plainsboro
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Answers (1)

There is no negative stigma with FHA financing however typically if your score is below a 720 and you are putting less than 20% down, FHA might be a better alternative because there would be no hits to the rate to go FHA compared to conventional financing as long as you have above a 620 score(current minimum for most lenders to get approved for FHA).  Hope this helps.

Al
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May 17 2009
 
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Are there any real disadvantage(s) of taking out an FHA loan vs conforming loan?
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May 17 2009 | 1 answers
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