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uniquelysupe…, Home Buyer in Austin, TX

Morning! I had more a lender question: Why would my lender not offer a Conventional 97 but offer the FHA??

Asked by uniquelysuperior1, Austin, TX Mon Apr 15, 2013

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Answers

1
only reasons i am recommending FHA over 97% conventional are:

1. lower credit scores between 620 to 659. fha really doesnt have many adjustments for credit. wher conventional does and the MI factors do too (unless you can do My community these adjustments are minimal)
2. higher DTI. FHA is alot more leniant on higher debt to income. i have closed deals were the ratios were 42% housing 56% total.
3. need a non occupant co borrower to qualify

every situation is different, but if you have high credit score and low debt to income ratios i would definately look at conventional. feel free to email me at tony.garcia@everbank.com to discuss your situation in more detail.
0 votes Thank Flag Link Mon Apr 15, 2013
Well, I've researched the 2 products and I'd perfer (and qualify) a 97% loan. But the preffered lender wont cary the product. I'm just wondering why would they not offer this product?
Flag Mon Apr 15, 2013
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