Still don't understand why real estate agents answer mortgage questions.
@ Robin, as much as I agree with some of what you stated about Linda and her answer, because I felt it was all over, I disagree with your last comment also. You stated... "The only difference in closing costs when putting down less than 20% is the up-front MIP fee or Funding Fee on VA,"..
That is 100% incorrect... the other difference would be the pricing hits on a conventional mortgage, even if you put 20% down, because it's also based on the credit score. Hardly anyone brought up credit scores.. if you have 20% to put down and going conventional with a 620 credit score, you would have to pay an additional 3 pts out of pocket. At least with FHA, the upfront can be rolled in. So amny answers in this forum with very bad examples and or explanations, not thinking all of this out. No wonder borrowers get confused and sometimes get into a bad mortgage.
For the person that said putting 20% down is better, not always... just as I mentioned above and for the fact, that case is king... in some cases, your mortgage payment might only be a difference of $150, but it could be better to keep that $20,000 in your pocket. If you don't know it al, you should keep such comments to yourself. It's like financial planning.. you need to look at all options, and how to best spend the borrowerrs money....