Down Payment and FHA loan?
Are there any reasons to apply for FHA loan if I have good credit score and able to come up 20% down payment?
- A DLv 51 decade agoFavorite Answer
Probably not. You can probably get a better interest rate if you can go conventional.
With 20% DP you can avoid PMI. With FHA you are obligated to pay 1.75% upfront for MIP and pay MIP for at least 5 years.
Unless your debt-to-income ratio is too high, you will probably do better with a conventional loan.Source(s): TX REALTOR
- arizmendiLv 44 years ago
Pulling out the money gained't be a issue. communicate in self belief for your human being loan officer, this debt may be blanketed on your ratio, even if the underwriter will favor to work out the documents of the debt mutually with; higher stability, fee and your new month-to-month charge. Why is the non-public loan officer no longer providing a furnish software with the FHA? Nehemiah or Sovereign furnish Alliance are nonetheless practicable even with the present ruling. The band does no longer go into outcome till October a million of 2008. those delivers are money from the corporate and may hide down charge and shutting costs with approval from the corporate. good luck
- Anonymous1 decade ago
usually not. unless you are in a high value area. FHA loan limits may be better then conventional loans - these a better interest rate.
Talk with a lender.
- CJKatlLv 41 decade ago