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am I required to get an fha loan if my down payment is less than 20%

by lentzmark98743506 from Edmond, Oklahoma. Mar 18th 2014 Reply


Steve Cooley (steve.cooley)
#5 ranked lender in Oklahoma - 12 contributions

No, you are not required to go FHA if your down payment is less than 20%. However, you might be better off going FHA if your score is in the mid to low 600's. I would be happy to take a look at it for you if you would like. My office is in North OKC and I live in Edmond.

Mar 18th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

No, in fact if you have sufficient credit, I would avoid FHA at all costs.. FHA has the most expensive mortgage insurance of any loan product, and you pay it for the life of the loan.. the only way to remove it would be to refinance into a different loan product or pay off your loan.. not the same with Conventional financing.. With conventional financing, you need 5% down or more.. and the mortgage insurance is nearly half of FHA.. if you put even more down the MI is even cheaper.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 18th 2014
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John Schweer (johnschweer)
#9 ranked lender in Missouri - 163 contributions

You would not be required and in the current market, FHA is no longer the best choice for people with less than 20% down there are several other ways to put the loan together and i would suggest running from a lender that tells you that you are "required to"

Mar 18th 2014
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Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

You have different loan options available to you if you have good to excellentcredit. Different lenders offer different first time buyer loans, including the standardfannie mae or freddie mac conventional loan with 5% down. Sometimes, thatloan, even with only a 620 mid fico credit score might still be an advantage overFHA even though the conventional loan rate might be .750 higher in interest...ifyou can afford the extra cost with the lower credit score. However, there are first time buyer programs that will give you a terrific rate with much lower mortgage insurance than FHA. I can only lend in California.

Mar 18th 2014
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Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

A quick follow up on the standard conventional loan with 5% down payment: youwill generally need to have a minimum credit score to quaify with less than 20% down payment and 620 will not be acceptable. However, some first time buyer programs other than FHA could allow as low as a 620 mid fico credit score. Do check with a local Broker or Lender and see what you qualify for!

Mar 18th 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

Heck now... As long as you have OK or better credit, and at least 5% down payment, most people can (and should) do a conventional loan. Generally speaking, it is a much cheaper payment compared to an FHA loan. There are other considerations when picking a loan product, so be sure to go over all the options when talking to your loan officer. www.Minneapolis-Mortgage.net

Mar 18th 2014
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#76 ranked lender in Florida - 2,240 contributions

No, you are not. As long as your credit score is sufficient for conventional you can put down as little as 5% on a conventional loan.

Mar 18th 2014
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