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?

4 Answers

  • A D
    Lv 5
    1 decade ago
    Favorite 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
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  • 4 years ago

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  • Anonymous
    1 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.

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  • CJKatl
    Lv 4
    1 decade ago


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