Home Buying in Aurora>Question Details

Andrew, Home Buyer in Aurora, IL

720-750 Credit Score and 5% down, FHA or Conventional??

Asked by Andrew, Aurora, IL Tue Oct 7, 2008

I really dont know what loan I should go with, and FHA or a Conventional. My credit score is over 720 and I am putting 5% down. The figures I was handed show the monthly cost of the conventional being $17 more a month than the FHA. All closing costs, fees, etc are put into the total cost so I will not be paying the FHA MI Fee out of pocket if I went with that. Does anyone have any advice? The P&I difference is only $13 less with the conventional but at the same time the PMI is more putting the monthly payment slightly more. This is all giving me a headache! I am assuming I will live there for 4-7 years.


Help the community by answering this question:


how much is the up front mortgage insrance on the FHA loan?
If you are going to live in it for 4 years or less, will you make up the cost of this fee with the lower payments?
Keep in mind tha your loan balance is higher with the FHA loan so when you sell the home you will get that much less.

hope that helps
0 votes Thank Flag Link Tue Oct 7, 2008
FHA is more for the credit-challenged...and w/ 5% down, you should go Conventional. Ask your mortgage professional. He/she will be the best guide to relieve your headache.
0 votes Thank Flag Link Tue Oct 7, 2008
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