Q&A: Should i use a Conventional or FHA loan?

Posted on Aug 22, 2012 in FHA Information

Question by : Should i use a Conventional or FHA loan?
My fiance and i plan to buy a townhome sales price is 115, here medical 000.We have 5000 to put as a downpayment. Which passes for the 3.5% requirement for FHA loan. But should we just get the conventional loan instead to get a better mortgage rate? I have good credit of 770 and he has 605. We can’t put 10% or 20% down to avoid pmi so we were thinking we get two loans instead using downpayment assistance from the housing partnership of northeast florida. Which do you think we should chose??
For closing cost his job has a matching program for first time homebuyers in which for every $ 1 we contribute they match by $ 5. no repayment after 5 years

Best answer:

Answer by sassy2
The conventional loan is better in that there are no restrictions of the condition of the house you are buying.
But you cannot get two loans. Those days are over. All you can afford is the FHA loan. Your down payment will be 4025. What will you use for closing costs? They can run as much as 6k. Do not think you can afford being a home owner at this time

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One Comment

  1. You cannot get a conventional loan, you will have to get an FHA loan.