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Should I go conventional 3% down instead of FHA?

My credit score is in the high 700's. I have been pre-approved for a FHA loan, but I am wondering if I am better off doing a conventional loan instead by natalie.towns565 from Stone Harbor, New Jersey. Nov 13th 2015 Reply


Michelle Elbaum (michelle@everestequity.com)
#119 ranked lender in New York - 4 contributions

Hi Natalie,You raised a very intelligent question. If you can qualify with a convention loan that would be a more cost effective option for you. It would be my pleasure to talk to you and see if you can qualify for a conventional loan. I can be reached @ (845)675-4020 Michelle Elbaum located in Suffern, NY

Nov 16th 2015
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Dennis Flanagan (dflanagan@fam1fund.com)
#141 ranked lender in New Jersey - 10 contributions

It depends if you qualify for conventional financing due to Debt to income ratio and the biggest benefit to conventional is there is no upfront mortgage Insurance premium and the monthly is only required until the loan to value reaches 80% of the value of the property. Were you not shown the differences on your pre-approval? If you would like a comparison I can be reached at 732-740-7190 and am Located in Freehold NJ

Nov 13th 2015
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Roland Minard (rminard@homebridge.com)
#143 ranked lender in New Jersey - 1 contribution

FHA has lower rate and lifetime mortgage insurance. conventional has higher rate with mortgage insurance that can be reduced/removed without refinancing after 24 months of payments on time. I would look at both total payments and look and how close they are . my preference is conventional but fha is the back up plan I would also consider a conventional long term adjustable (either 7/1 or 10/1 arm) . there is a large gap between fixed and adjustibles and sometimes the payment (difference between current housing payment and new mortgage payment ) can be less painful. Also it's a fact that most households do not stay in the house 30 years or keep the original mortgage 30 years. Typically sell or Refi in 7 years after purchase

Nov 13th 2015
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Generally yes, if you qualify for the 3% down conventional that is a better option for well qualified buyers than FHA

Nov 14th 2015
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