650 mortgage middle score. Conventional possible?

[Calidreaming]

VALoanMaster, thanks so much for all the info.  I did not realize that pmi is tax deductible.

So it seems the only reason for someone with credit scores in the 650s to consider NFCU (or conventional) over FHA is if you don't have or don't want to put 3.5% down.  For us, the payments are not that much more with NFCU versus FHA and we really, really, really want to hang on to our cash.  But if we were looking to put 3.5% or more down, it seems like FHA would be the best option hands down.

[Anonymous]

Everything I have read on here and online says that FHA loans require PMI for the life of the loan. Regardless of the LTV. It used to hit a threshold and drop off but my understanding that is no longer the case. 

[VALoanMaster]

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@Anonymous wrote:

Everything I have read on here and online says that FHA loans require PMI for the life of the loan. Regardless of the LTV. It used to hit a threshold and drop off but my understanding that is no longer the case. 

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Not true. If you put 10% or more down the MI lasts for 11 years & the cost goes down slightly.

[VALoanMaster]

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@Calidreaming wrote:

VALoanMaster, thanks so much for all the info.  I did not realize that pmi is tax deductible.

So it seems the only reason for someone with credit scores in the 650s to consider NFCU (or conventional) over FHA is if you don't have or don't want to put 3.5% down.  For us, the payments are not that much more with NFCU versus FHA and we really, really, really want to hang on to our cash.  But if we were looking to put 3.5% or more down, it seems like FHA would be the best option hands down.

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No problem.

I only mentioned the FHA with 10% down because the OP said they were putting 30K down on a 300ish purchase.

The best option is always subjective. What maybe the best option for you may not be the best option for me.