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TthomasJR 
LSU Fan
Houston, TX
Member since Sep 2006
8483 posts
| FHA VS Conventional (Posted on 11/17/12 at 5:35 pm)
Talk me into either. Me and the wife can't decide which one is best.
Lender told us for the FHA we put down 3% and Conv is 5.5%
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LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
8644 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 5:42 pm to TthomasJR)
Rates equal ?
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TthomasJR
LSU Fan
Houston, TX
Member since Sep 2006
8483 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 5:47 pm to LSUAfro)
FHA has interest rate of 3.25
Conventional is 3.75
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Mercy Percy 
Florida Fan
Norman Oklahoma
Member since Oct 2009
1140 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 6:05 pm to TthomasJR)
I did FHA. No problems
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Franktowntiger7
LSU Fan
Member since Dec 2010
1631 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 6:06 pm to Mercy Percy)
FHA will probably have more fees upfront and PMI will be there forever. Conventional.
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ds1tiger
LSU Fan
Closer than you think
Member since Apr 2006
203 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 6:43 pm to TthomasJR)
If you have great credit and have the money for either option, go conventional. Monthly PMI will probably be less and you won't pay the upfront FHA MIP.
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LSUSUPERSTAR
LSU Fan
Arlington, TX
Member since Jan 2005
8715 posts
 Online
| re: FHA VS Conventional (Posted on 11/17/12 at 7:39 pm to TthomasJR)
We went with Conventional. The interest rate was only 0.5% difference and had a lower PMI rate. Down payment with FHA was 3.5% and Conv was 5%. We put down around 12.5%.
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ocelot4ark 
Arkansas Fan
New York, NY
Member since Oct 2009
6990 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 8:42 pm to TthomasJR)
FHA will have higher standards for the appraisal, which can delay things at times.
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CajunTigerBabe
LSU Fan
Lafayette
Member since Sep 2012
206 posts
| re: FHA VS Conventional (Posted on 11/17/12 at 9:23 pm to ocelot4ark)
If you have at least a 720 and can put 5% down, go Conv. You will save money on up front MI and monthly MI is lower. Rate may be slightly higher, but still the better loan.
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wiltznucs 
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
4390 posts
Online
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quote:
FHA will probably have more fees upfront and PMI will be there forever.
This, I wont ever do FHA again...
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lsu tigerdog
LSU Fan
Baton Rouge
Member since Nov 2007
92 posts
| re: FHA VS Conventional (Posted on 11/18/12 at 6:49 pm to TthomasJR)
depends on your credit score, you really want a 740 score on a conventional loan. you can go as low as 680.
on fha, you'll have an upfront funding fee plus pmi is higher. but fridays rate was at 3.25% on an fha, 3.625% on a conventional loan.
fha will work with buyers as low as 640, rate still at 3.25%
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nikki6 
New Orleans Saints Fan
Dallas
Member since Jul 2011
1582 posts
| re: FHA VS Conventional (Posted on 11/18/12 at 8:22 pm to lsu tigerdog)
We just did a conventional and by just I mean last week. 20% down. Locked in at 3.3%. We can get the papers redone one more time for free if rate goes lower before closing. I doubt it will though.
We asked about FHA, but was told that with our high credit scores and 20% down payment, it was not worth it. Said we would have to carry some kind of insurance FHA requires in addition to just regular home insurance,+ a lot of other fees, pmi, etc.
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