If you have a low down payment and/or lower credit score, then go FHA. If you have 10% or more for a down payment and a score over 700, then go conventional. A conventional loan at 90% will have almost the same monthly mortgage insurance payment as FHA but without financing the upfront mortgage insurance of 2.25% into the loan amount. Once you get 22% equity in the property from appreciation and paying the balance down, you can get the mortgage insurance removed from the conventional loan. This is not the case with FHA as you will have to achieve the 22% equity level by paying the balance down without regard to appreciation which could take aprx 11 years. Depending on where you are buying and your credit score, you could also have the option of doing 2 loans on conventional with an 80/10/10 to avoid mortgage insurance altogether. What is your score and how much are you putting down?
f you want help along the way don't hesitate to Ask : http://fhamortgageinfo.com/fha-vs-conventional-loan/... more
FHA loans are government-insured loans that could be a good fit for homebuyers with limited income and funds for a down payment. Bank of America, an FHA-approved lender, offers these loans, which are insured by the Federal Housing Administration (FHA).
More information is online at : http://fhamortgageinfo.com/bank-of-america/... more
Any reason you wouldn't want to buy? In this market it is actually amazingly cheaper per month to buy then rent. You can get in for as little as 3% down. My husband works at IUPUI. I will ask him what are good areas to live around there and get back with you. What will be your position and what is your comfort level per month to rent? Call me any time at 317-313-3544 for more info.... more
Doug, I think tip #5 & #6 are vital! I think there are too many people who don't know the rules or have the experience in buying rental properties. Using the services of a professional could really benefit someone who's interested in investing in real-estate. Property managers or buyer advocates could really help benefit people. http://www.wbpproperty.com/buyers-advocacy... more