With good credit scores, is a 5% downpayment conventional or 3.5% downpayment FHA mortgage best.?
My wife and I are going to purchase a home in the near future and are trying to decide between a 5 percent downpayment conventional loan and a 3.5 percent downpayment FHA mortgage. My wife and I both have good credit scores that range from 717 to 760.
jph -
watch out for seller concessions - they were fine and dandy 4 years ago when a home would appraise for whatever the deal was for. now - with the new regulations - appraisals are coming in VERY tight.
3.5% or 5% - makes no difference.
Tony Auffant, Continental Home Loans - 631 241 4366 - he's awesome.
It depends if your area allows for PMI on Conventional financing with 5% down currently. Most buyers with a small down payment are going FHA: you can ask for a larger seller concession towards closing costs than on Conventional Financing, the monthly MI is cheaper, and there are no pricing adjustments.
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