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trying to decide on fha versus a loan with fannie mae - help

my boyfriend and i are buying a home together and we technically have enough down for the conventional option OR fha, but would like to save as much money upfront if possible. the LO at first was really pushing for conventional, but now he keeps stressing how great fha is now because the insurance is lower? i thought fha had higher rates overall though, and now we can't tell if he will just benefit more if we go with fha now, and get stuck with higher rates by nezreaoakley78536671 from Kimberly, Oregon. Jan 28th 2015 Reply


Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#0 ranked lender in New York - 2,236 contributions

FHA has lower rates than conventional. That said FHA charges an upfront mortgage insurance premium of 1.75 % of the loan amount and a monthly mortgage insurance premium of .85% and allows 96.5 % financing. Conventional now allows 97% financing and only has a lower monthly mortgage insurance premium than FHA. You really need to have a loan officer run both scenarios to see which is best

Jan 28th 2015
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Lorne Harvey (lorneharvey)
#0 ranked lender in Washington - 418 contributions

Team Best Mortgage Option has answered your question accurately. Seek the advice and assistance of a competent loan officer.There are some great loan officers that participate on this forum.

Jan 28th 2015
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Dee Robb (drobb_576_239)
#0 ranked lender in Oregon - 6 contributions

I would say your best option would be to break it down both ways and see which one benefits your needs. Look at them side by side.

Jan 28th 2015
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Chris Barry (TheLoanDoctor)
#45 ranked lender in Oregon - 40 contributions

Hi there,Your loan officer should show you the comparison, and help you decide which is best for you based on your future plans. If you can't get satisfaction in that area, give me a call. I'm happy to compare the options for you and help you decide which loan is best for your situation. It's not an easy decision to make on your own, but I can help you weigh the positives and negatives of each, and discuss the MI implications as well over the long-term.

Jan 28th 2015
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