Re: Evaluating Convention
al vs. FHA
07-22-2010 11:55 AM
Heya Steve, didn't know you posted here too. You make a good point, and thanks for adding that. It does get really close when comparing 15-20% down on VA vs. conventional. The FICO score would pretty much be the determining factor on what terms would be available for conventional. Given the difference in VA rates vs. conventional, and when 10% down or more (using VA funding fee of 1.25% for this comparison), it actually appears a 720 score would give borrowers approximately the same rate with conventional financing and paying the 1.25% towards buying the rate down, as they could obtain with VA.
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