If rates of FHA loans under regular mortgage payments?

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I watched the loan options. I know that the FHA to implement money with little or no known bottom. We intend to put 20% + to worry about our next mortgage, but the mortgage payment. A FHA or Rural Development offer lower interest rate normal conventional loan?

  1. Reply
    April 29, 2011 at 11:29 pm

    They are usually the same as a conventional loan. You will be subject to paying an Upfront Mortgage Insurance Premium that is 1% of your loan amount. This will be rolled into your loan amount. If you are putting 20% down you will still have to pay PMI on an FHA loan. The only reason you should do an FHA or RD loan is if you don’t have a poor credit score in the 620 to 680 range.

  2. Reply
    April 30, 2011 at 12:08 am

    Not necessarily, not usually
    Generally fewer restrictions on conventional loan, and with 20% down you can get conventional loan as well as avoiding extra costs of PMI
    Plus you pay substantially LESS interest over life of loan
    Loan approval depends on whole package of you: credit rating, stable employment, adequate income, sufficient down payment, low debt load.

  3. Reply
    Because I Said So
    April 30, 2011 at 1:04 am

    FHA rates aren’t necessarily lower. the reason people go with FHA loans is because the DP requirement is lower, I think you only need 3.5%. but if you have 20% DP, you can get a conventional loan anywhere.

  4. Reply
    April 30, 2011 at 1:15 am

    All money used to lend for mortgages comes from private investors- they all want the same return on their money. There are only small differences that come from a presence of risk in some loans that are not there in others.

    for instance a 15 year loan gets a lower rate and a conventional loan with 20% down may have a lower rate.

  5. Reply
    April 30, 2011 at 1:33 am

    Sometimes they do, sometimes they don’t…depends on the market the day you’re looking. The thing to remember w/FHA is if you take a 30 yr. term you’ll still have to pay mortgage insurance even if you put 20% down so the payment may be higher even if the rate is lower.

    RD loans have property and income restrictions, higher rates and costs then FHA and conventional.

    If you have 760+ credit scores and 20% down, the loan that makes sense is a standard conventional loan. If you don’t think you can afford the house payment then buy a less expensive house or don’t buy.

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