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James Kay's Advice

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James Kay wrote:

Should I go FHA or Conventional with 5%?

if you can't fix the credit and go conventional it is going to be a close call and will also depend on how long you plan on staying in this home since PMI is not removable on FHA loans.  FHA has lower overall rates and/or better rebates but higher monthly PMI.    Also, don't forget to calculate the tax deductibility of mortgage interest when comparing these options, it's a big factor often overlooked by most loan officers.  You should do an in depth mortgage analysis with a competent loan consultant to determine the best answer.
September 27 2013