FIRST-TIME HOMEBUYERS

 
First time homebuyers will call me asking for a FHA loan. I guess the urban myth is that there is not a low-down payment option for conventional loans. However, this is not true. Conventional loans can be obtained for as little as 3% down.
 
So, what results in a better option for the first-time homebuyer? It depends on the credit score. If you have less than perfect credit, then the FHA loan will likely result in a lower monthly payment. If you have good or excellent credit, the conventional loan may be the better option.
The FHA loan can be an expensive loan. It requires a minimum of 3.5% down payment. It has 2 types of mortgage insurance, up-front mortgage insurance and monthly mortgage insurance.
 
A conventional loan has only one type of mortgage insurance, either assessed up-front or monthly (there is also a lender paid mortgage insurance option which results in a higher interest rate).
 
Another big distinction between the 2 loans is that mortgage insurance stays on the FHA loan for the life of the loan. Mortgage insurance on a conventional loan can be removed after you obtain 20% equity in your home.
 
So, which is the better option for you? Contact us and we can walk you through your options.
 
We offer a variety of products and services, ask us how we can assist you today:
Counsel Mortgage Group®, LLC
www.counselmortgage.com
480-502-1000
NMLS #178927
AZ MB #0909580
CA DBO #60DBO43873
 
Copyright © 2019 Counsel Mortgage Group®, LLC.