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FHA vs conventional

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FHA vs conventional

In January I got pre approved for an fha loan of 300k with middle score of 666. I had a collection with portfolio recovery which I paid off on 1/28 which the will delete within 30 days.I wasn’t planing on putting any offers in till after the collection came off with hopes for a conventional with the score bump but a house has come up that has me tempted would I be able to switch mortgage types after I put offer in?
3 REPLIES 3
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Frequent Contributor

Re: FHA vs conventional

I think you should be able to change a lot of things in your financing. I mean you can come at the sellers with a 35% down payment then later change that to 5%-10%. I'd like to see what others have to say about this. At least with a conventional you would be able to drop your PMI without having to refi.

 

Good Luck!






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Message 2 of 4
Established Contributor

Re: FHA vs conventional

Just compare the APRs on the two loans and make  your decision based upon that---my guess is that the difference in APR isn't likely to be much more than .5% and therefore, unless you plan on paying extra principle early on in your home ownership/loan amortization cycle there's really nothing wrong with the FHA loan, imo.

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Licensed NC Mortgage Loan Originator
Message 3 of 4
Regular Contributor

Re: FHA vs conventional

Ask your lender to give you presentation for both products so you know the difference. FHA has draw back to not cancel the MI for the life of loan if you have lower down payment. But interest rate is lower and MI payment is lower compare to conventional loan. 

Message 4 of 4
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