If you are looking to buy a home it's a good idea to take a look at 5% down conventional vs. FHA. There are a couple advantages of 5% conventional loans over FHA loans.
1. 5% conventional home loans do not have upfront mortgage insurance and have a lower monthly mortgage insurance. FHA currently has a 1.75% up front mortgage insurance and a 1.25% monthly mortgage insurance. 5% down conventional loans do not have any upfront mortgage insurance and have a much lower monthly mortgage insurance.
2. FHA home loans require you to carry monthly mortgage insurance for at least 5 years and conventional loan only require you to carry it a minimum of 2 years. Of course in both cases the loan needs to be paid down to 80% of the original purchase price to get rid of the monthly MI.
There is also a 3% down conventional loan option that still does not have the upfront MI that FHA rquires, but it does have higher monthly MI than 5% down.
Read more about this topic at:http://sandiegomortgageblog.com/conventional-loan/5-down-conventional-an-excellent-alternative-to-fha/
If you have any questions about this or other mortgage topics don't hesitate to call at 858-922-7899 or email at homeloan8@gmail.com
Regards,
http://sandiegomortgageblog.com/
Rob Chomentowski
Sr. Loan Officer
Affinity Financial
858-922-7899
homeloan8@gmail.com
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