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Need to Change Loan Types

My sister and I are currently approved for a 30YR conventional loan. But after some more research, we need to put less down and want a lower interest rate.I have researched to find FHA rates dropping and are almost 1/2 a percent cheaper now. How would I be able to get approved for a FHA loan without having to redo my terms and get another ding on our credit? Thank you! by Ash2Ash_kimmy360706 from Galveston, Texas. Jun 8th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

The short answer is yes.. but it depends on how far along in the process you are.. Has the appraisal been done? Has your file gone through underwriting? Understand that FHA rates are lower, but FHA also charges a 1.75% Up Front Mortgage Insurance premium. This premium is added to your loan, but it should be considered when comparing to conventional. Also, if you have really good credit scores, the monthly mortgage insurance premium can also be lower on FHA compared to conventional.. Also understand that FHA has "maximum" loan amounts.. if you are over that, then FHA wont be an option for you.. As far as the "ding" to your credit.. If you keep the loan with the same loan officer, he can use the original credit report.. no need to re pull it.. In all reality.. you should be talking to your loan officer.. let them put together a side by side comparison so you can see exactly what the differences would be.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Jun 12th 2018
Dianne Joaquin (Dianne)
#87 ranked lender in Texas - 11 contributions

We specialize in these situationsPlease feel free to call me and discuss 210-317-4454Thanks, Dianne

Jun 12th 2018
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,524 contributions

Generally it is easy to change, just tell your Loan Officer. if you qualify, they'll make the changes, have you sign paperwork reflecting the change, and everyone will move on with their day. There would be no reason to pull new credit - and besides - inquiries on your report are NOT what people think. For 99% of people, 99% of the time, you should NEVER ever have a single concern about an inquiry. FHA rates, especially if you have a lower credit score can be better than a conventional loan - but it also has negative items. Including that mortgage insurance NEVER goes away if you just do the small down payment. Finally, I do loans 50/hrs a week, and monitor the markets all day everyday. Rates on FHA have NOT been dropping...

Jun 14th 2018
John Burke (jburke)
#29 ranked lender in Texas - 238 contributions

Hi Ash2Ash,You need to get a 2nd opinion from another lender & here's why.You "should" be eligible for a conventional loan with as little as 3% down & reduced PMI & interest rates. FHA may still end up being your best option but the only way to know for sure is to have an lender run each scenario for you so you can compare the payments side by side.Please feel free to contact me for more information or help. | John Burke | Senior Mortgage Banker | Great Plains Bank | | (877)228-9069 | Lending in ALL 50 states

Jun 19th 2018
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