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Answers (10)
Best Answer
- Clay Branch, "Georgia Loans"
- Contributions:7835
No, 20% down on an FHA loan will still require you pay MI for 5 years unless it is 22% down and a 15 or 10 Yr Fixed. Is your score in the low 600's?
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
If you can afford a bit more on the payment, you should also look at a 15 year conventional which should be by far the lowest cost/rate compared to the FHA and Conv 30 years.
On 184,000 loan amount, FHA 30 would be 1,033 PIMI and 271 of that going to principal on first payment.
On 184,000 loan amount Conv 15 should be 1,304 PIMI with 786 of that going to principal on first payment.
An extra 271 per month (if you can afford it) results in 515 more toward your balance. Great trade off if you can make it work.
On 184,000 loan amount, FHA 30 would be 1,033 PIMI and 271 of that going to principal on first payment.
On 184,000 loan amount Conv 15 should be 1,304 PIMI with 786 of that going to principal on first payment.
An extra 271 per month (if you can afford it) results in 515 more toward your balance. Great trade off if you can make it work.
- shapiroamg
- Contributions:3058
I would suggest David contact Joe Caf.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
David..Here is another way to look at. I will preface this by stating there is nothing on your credit report that would cause you not to get approved. The pricing hit for your credit score is 3% of the loan amount. That is what is causing your rate on the conventional loan to jump to 4.75%. Put the 20% down and pay that up front as a closing costs so that you are left with the rate a person with 800 credit would get. That cost is $5520. If you were to go FHA, 5 yrs of MI payments would total a little over $10k. Not only would you save $5000 but there may be some tax deductablilty with the $5520 you are paying in closing costs (always consult your tax advisor).
- twoweelz5
- Contributions:3
I am being told it will be hard for me to get a conventional loan without jumping through hoops> What do you think. I was given 3.875% with the FHA and 4.75 with a conventional loan. The pmi brings the FHA up $200 a month payment but will drop off after 5 yrs. The conventional requires a much larger down payment monetarily speaking????This is why I am leaning towards the FHA so we can put at least 20% down and lower the payment to bring it closer to the conventional and in 5 years it will be even lower. The home is $230,000
- Omar Khamisa, "Okhamisa"
- Contributions:8
- Clay Branch, "Georgia Loans"
- Contributions:7835
It depends on the size of the loan and how long you will hold this property. A $500K purchase with 20% down will be aprx $1870/mo on FHA and the MI will be aprx $367, total of $2238/month vs a conventional loan with a payment of aprx $2026/month ( no MI ) using a 630 score. The MI would fall off the FHA loan after 5 years w/20% down leaving you with aprx $1870/mo.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
that's a great idea...aka CONV financing
Can I put down more than 10% on an FHA loan. I want to put down 20% and not pay PMI is that okay?
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