FHA only requires 3.5% down but with your scores you may be obligated to put down more. I would take the stability of a 30 year fixed as there is not much difference in a 5 year arm and a 30 year term. The other reason is that there is no surity that rates will be this low in 5 years or that you will have 20% equity in the property to refinance out of the PMI and avoid any large rate adjustments over the remaining 25 years. Mike Covin has a product you should look at-see below!Jun 16th 2011
If it were me, I would take the stability of the 30 year fixed. You never know what will happen to values and the mortgage industry. If you benefit from a lower payment by putting 20% down, then do that. If the payment difference is minimal and you can put that other 15% to use somewhere else, then you should do that. I believe with that credit score, most lenders will require a 10% down on the FHA program. Good luckJun 15th 2011
Didn't find the answer you wanted? Ask one of your own.
Ask our community a question.