With good credit scores, is a 5% downpayment conventional or 3.5% downpayment FHA mortgage best.?

Asked by Jph, 11385 Sun Aug 30, 2009

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.

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Thomas McGiv…, Agent, Farmingville, NY
Sun Aug 30, 2009
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.
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Mike B, , Raritan, NJ
Sun Aug 30, 2009
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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