Posted on: 30th Jul, 2008 08:56 am
I am a first time home buyer and am trying to decide between doing FHA or conventional. I have been pre-approved for both. Can you please explain the differences and if there is a clear benefit of doing one over the other. (With the FHA I will be putting the 3% down, and Conventional 5%).
Thanks!
Thanks!
Hello-
In general, FHA is designed for first time homebuyers and allows more flexibility with qualifying. However, this doesn't necessarily mean it's the right decision for you.
Conventional is typically a little tougher to qualify for and requires a little more down. Rates are typically a little lower, but the monthly mortgage insurance higher.
Either one is good. You have the luxury of deciding. I'd say get a good faith estimate from your loan officer to compare them side by side and you can decide which one you're more comfortable with.
Good luck!
In general, FHA is designed for first time homebuyers and allows more flexibility with qualifying. However, this doesn't necessarily mean it's the right decision for you.
Conventional is typically a little tougher to qualify for and requires a little more down. Rates are typically a little lower, but the monthly mortgage insurance higher.
Either one is good. You have the luxury of deciding. I'd say get a good faith estimate from your loan officer to compare them side by side and you can decide which one you're more comfortable with.
Good luck!