FHA Mortgage Loans are perfect for folks who need “a little flexibility.” They offer 3,5% down payments, credit scores lower than their Conventional Counter Parts – and the ability for the Underwriter to “consider” your part-time job, even if you haven’t had it for 2 year! How do we compare FHA PMI Versus Conventional PMI when we are deciding which program to use?
If you have 680 Credit Scores, and some cash and a good job, what do we suggest then? Does this mean that FHA is not the program for you? With the 2015 FHA PMI Rate change – we are talking to more and more borrowers about a Conventional loan!
We think that with mortgage rates as low as they are – many of the people who buy houses right now, might keep them for 20 years or more. If you are one of those people who agree (might make a great rental house later!) then you would want a mortgage that allowed the PMI to drop off down the road!
See the Comparison between the programs:
This came from the MGIC Mortgage Insurance Website. Understand that PMI only works if you have a credit score over 640… but as you can see, I showed a lower interest rate for the FHA loan than the Conventional loan – but the payment for the Conventional loan was still lower than the FHA one!
If you are looking for a new home in Raleigh, or you are looking for the best mortgage rates in Cary – call Steve and Eleanor Thorne 919 649 5058 – we love helping people compare programs, and options for a FHA Streamline Refinance or a way to lower their total mortgage payments! ALL PMI Rate comparisons
I live in Michigan. I have two part time jobs . first job I have been working 1.8 months. second job 10 months. My credit score is around 780 and even with 20% down payment. I still cant get a loan. Every lender I approached turn down my application. Reason is no 2 years of continues employment.
FHA is pretty clear that it will need 2 years of history, but I’m surprised no one suggested a “kiddie” condo loan where you can buy a house with a non-occupying co-borrower? That’s the best deal for you!