I thought I couldn't get a conventional loan.. I don't have 20% down

Mortgage and Lending with Republic Mortgage Home Loans in Olympia Washington

I get asked, or told, quite often that a buyer has been informed by another lender, Realtor, mother, brother or just the air, that they have to go with an FHA loan because they don't have 20% to put down.

FHA may be the best option for these people, but let's explore there situation real quick.

*First.. What do you have to put down?? currently with as little as 5% down a buyer can get a conventional loan with one time upfront mortgage insurance (This will save you the monthly MI payment and allow you to buy more home.)

*Second... What is your Credit score?  680 plus - GREAT- a 680 score is currently what is needed to qualify for the upfront MI insurance. ( below a 680 I can run a re-score scenario and look at the possibility of raising your score to a 680 in as little as 2 weeks)

That's it!  These are the two biggest items to look at.  It's pretty quick and easy to see if you can qualify for conventional financing verses FHA and possibly save yourself THOUSANDS of dollars, both upfront and monthly.

If you would like more information on which option may be best for you or your clients I'd love to talk with you about it!!


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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Of course a buyer can get a 5%,  10% down.  They just have to be prepared to pay MPI.

I hear this regularly from buyers who hear it from other agents who don't know what they're talking about.


Jan 04, 2011 06:47 AM #1
Sandra Pearce
Republic Mortgage Home Loans in Olympia Washington - Olympia, WA

It's something I feel like I have to correct daily any more.  I've had one recently that was 1.35% on a one time upfront MI -no monthly- when FHA would have be, at that time 2.25% upfront plus monthly.  My buyers saved HUGE.  I love it when that happens

Jan 04, 2011 07:12 AM #2
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Sandra Pearce

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