Hello all.. with my current credit situation, i can only be approved for an FHA loan, however i am able to provide 20% down on the property i wish to purchase. obviously, id like to go conventional to avoid the mortgage insurance, but this isn't an option. So i was thinking to go with either an FHA 30 fixed, or FHA 5/1 ARM with hopes to refinance in 5 years to a conventional fixed rate. I understand all the costs upfront and monthly for FHA, but have no choice. My question is, do I go the FHA 30 fixed or 5/1 ARM, and how much should I put down? Do i go the full 20% i can afford, or just go the minimum 3.5%? Thanks for all your help in advance!
Georgia. Jun 15th 2011