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Conventional or FHA?

Profile picture for flor720
Contributions: 1
My fiance and i plan to buy a townhome sales price is 115,000.We have 5000 to put as a downpayment. Which passes for the 3.5% requirement for FHA loan. But should we just get the conventional loan instead to get a better mortgage rate? I have good credit of 770 and he has 605. We can't put 10% or 20% down to avoid pmi so we were thinking we get two loans instead using downpayment assistance from the housing partnership of northeast florida. Which do you think we should chose??
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July 01 - US
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go get some credit counseling in order to get your score to 620.  Perhaps a secured credit card or any new revolving line of credit will get you there.  If you are a first time home buyer, you may qualify for the 8k tax credit.  Get into your loan and pay additional principle early on in the loan to generat more equity. 
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July 01
Profile picture for Martin Wareing
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With a 605.... you will be denied by CONV lenders in 99.9999999999% of the submissions.....  with a 3.5% down payment...... I will guess 100%.  DO not worry about CONV... MI companies will not write the loan for you and if they did, you would pass out at the level of premium charged.  FHA is your best/safest and only avenue.  Find a good lender and do not think of the coulda should woulda because it really is not there at all.  Good luck to you and I wish you well.
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July 01
Profile picture for wetdawgs
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A credit score of 605 won't qualify with most lenders these days, even with FHA so are you able to qualify on your income alone? 

It is very hard to get a second loan to avoid PMI these days.  Lenders have wised up to the practice and are at risk when this trick is pulled.   WIth that in mind, you'd probably be better off with FHA. 


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July 01
 

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