@Anonymous wrote:How different are the interest rates from a conventional to FHA. The FHA will have more restrictions on the home i purchase right?
Conventional is dictated by Fannie and Freddie for the most part, and the rate adjustements for a 640 mid score are frankly ugly. +2.750% and that's just off the top.
https://www.fanniemae.com/content/pricing/llpa-matrix.pdf
Go FHA, yeah some sellers will state no FHA but conventional is going to suck rate wise and you might not be able to easily refi it in the future: I didn't get a terrible rate but I may have made a mistake going with a 15 year mortgage (even if I can easily afford it), but now 18 months later I can't realistically change it as rates have shifted non-trivially... well not without making it more expensive than it's worth to do so. Lesson learned in this case.
In general I wouldn't want to get saddled with an expensive conventional right now compared to a solid FHA loan.
