FHA vs. Conventional

[Llhg71]

My TU score is currently 714 and I am looking to put 5% down.  Which loan would be better and why? 

[tooleman694]

Conventional because you have better PMI options.

[Llhg71]

Please explain the different options if I go conventional. I was thinking that the PMI was the same for both types of loans.

[u921333]

May have to go FHA .... Alot of conventional lenders are requiring 20% down or have absolutely perfect scores and still give you a hit on rates. The bad side is I believe by the middle of this year if you go FHA and have to pay Mortgage insurance its for the life of the loan not till the loan amortize's below 78%

[violetsmom]

We are going conventional with 5% down and scores in the low 700s...

[tooleman694]

They only require 20 percent down if you have a Fico score of 620, 5 percent down with a score of 660 and 3 percent down with a score of 680.

PMI is much cheaper when going conventional and you can pay it all up front for a small fee.

[JM-AM]

Still have to do the numbers. Rates are higher with Conventional loans, but once the new FHA rules come into effect, it would be very comparable in total cost which would make Conventional a much better option.