Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

Should I get an FHA loan?

My credit score is about a 690. I can afford about a 10% down payment. My question is, should I get the FHA loan, or should I go with a coventional loan? Either way, I would like to do a 30 year fixed mortgage. What are the benefits of an FHA loan other than a lower down payment?

9 Answers

Relevance
  • 1 decade ago
    Best Answer

    All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrower<!--and even for those with more experience! Here, we will discuss the different types of loan options, and how they work.

    http://mortgage-loans.awardspace.com/

    http://best-loans.awardspace.com/homeloans.htm

    First, there are two main broad categories of mortgage loans: government loans (FHA, VA, and RHS, or Rural Housing Service loans) and conventional loans (all other loans). In general, government loans have low or no down payment requirements for the purchaser-->and are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.

  • Anonymous
    3 years ago

    For Credit and finance solutions I always recommend this site where you can find all the solutions. http://your-finance.us/index.html?src=kfqduQY36

    RE :Should I get an FHA loan?

    My credit score is about a 690. I can afford about a 10% down payment. My question is, should I get the FHA loan, or should I go with a coventional loan? Either way, I would like to do a 30 year fixed mortgage. What are the benefits of an FHA loan other than a lower down payment?

    Follow 8 answers

    Source(s): For Credit and finance solutions I always recommend this site where you can find all the solutions. http://your-finance.us/index.html?src=kfqduQY36
  • Rachel
    Lv 6
    1 decade ago

    I would do neither. I would recommend that you keep saving money until you have 20% (assuming you are in a reasonable rental situation right now). The FHA loan will let you get the mortgage with a low down payment...but that doesn't come for free. If you have less than 20% then they will make you get private mortgage insurance. That is extra money that you have to pay each month that you will never get a benefit from...it is insurance to protect the bank since you are a risky buyer (ie - not enough money down). So, I would think the best thing to do would be to keep saving aggressively and then get a 30 year fixed rate mortgage.

    Good luck!!

  • 1 decade ago

    If you can get the same interest rate on the conventional, go that way. In a few years - maybe three or so - get an appraisal done to show that you have at least 20% equity in the property. Make sure your payments have been on time and you can drop the PMI at that time.

    Source(s): 15 yrs San Antonio Realtor
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    I would do a conv loan. Do a 80/10/10 so there is no PMI.

  • 1 decade ago

    Conventional...it won't have the fees associated with it that FHA does.

  • 1 decade ago

    You need to have your broker help you with a comparison to conventional loans.

  • Anonymous
    1 decade ago

    Unique guide info about your question HERE:

    http://all-mortgage-calculators.blogspot.com

    (home loans, apartment financing, mortgage guide)

    Good luck! All is possible!!

  • bill a
    Lv 5
    1 decade ago

    Lower interest rate.

Still have questions? Get your answers by asking now.