which is better conventional loan or fha loan. I am planning a 10 down payment.

Asked by Krypee, 95391 Fri Apr 16, 2010

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Henry Brooks, Agent, Ripon, CA
Sun Nov 18, 2012
You will have much better luck with a conventional loan as sellers generally choose conventional over others due to appraisal and inspection concerns. Feel free to reach out to me for more information and I would love to help! Your friend & Realtor, Henry Brooks
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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Fri Apr 16, 2010

To simplify things, I always tell my clients that a conventional loan is a loan of choice and an FHA loan is a loan of necessity. Your loan officer can work with you to clarify where you fit along this spectrum. And if you don't yet have a loan officer with whom you've built trust, let me know and let's get started today. I would be happy to be of service.

Thank you!

Rob Spinosa
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Barbara Van…, , Folsom, CA
Fri Apr 16, 2010
Hi Krypee -

Robin is right on!
The answer will be clear if you have a mortgage advisor run the numbers based on your qualifying factors and compare all your options side by side.

All the Best!
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, ,
Fri Apr 16, 2010
Krypee, what you need is for someone to calculate the total payments of each for you, taking into account your credit scores, and your debt to income ratio. If your scores are below 740, you rate might be higher, and once you add in the PMI, which is a higher rate than MIP for the FHA loan, your total could be more than if you add the up-front MIP to your loan. Also, if your DTI is above 41, you are not going to get PMI.
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Alyse Sands, Agent, Nashville, TN
Fri Apr 16, 2010
If you have good credit and 10% to put down you can qualify for a conventional loan (or an FHA loan). FHA loans are designed for buyers who have less cash (required 3.5% down min) and are more flexible on the credit scores. I hope this helps!
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, ,
Fri Apr 16, 2010
One of my favorite questions. I would love to talk to you about it in detail. In a nutshell I would recommend a 5%-10% conventional over FHA to avoid the 2.25% up front insurance premium. Now the factors that do play in are FICO score when recommending products. Please feel free to call me anytime for assistance or visit http://www.loansquawk for mortgage information.


Web Reference:  http://www.loansquawk.com
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Boris Aivazi…, , Glendale, CA
Fri Apr 16, 2010
There is two parts in this question; No. one which options you qualify for based on your income, dept to income ratio, credit score, property, etc.
No two: you need to compare the interest rate, mortgage insurance, origination fee, etc. for each loan to see which one is better. If you need a referral let me know.
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