Hello everyone. I am purchasing a house but the loan I could get was FHA because i did not have 20 % down and not enough credit for conforming loan. I could place 15 % down on the house but my question is whether i should do that or go with the minimum of 3 % because with FHA loan you pay premium mortgage insurance 1.5 % upfront and .5 higher interest rate. Lets say if i build a better credit in 6 months to qualify for a conforming rate and refinance the house from FHA to conforming do i need to have 20 % down for conforming loan or should i place the money to FHA loan and that 15 % is counted as home equity. All I need is 5 % after that right or do i need to have 20 % in cash?
Do I need to have 20 % down payment when I refinance from FHA loan to conforming ?
One Response to “Do I need to have 20 % down payment when I refinance from FHA loan to conforming ?”
Leave a Reply
Tags:
conforming loan,
fha loan,
hello everyone,
home equity,
insurance,
interest rate,
money,
premium mortgage insurance,
Recent Posts:
Related results on Do I need to have 20 % down payment when I refinance from FHA loan to conforming ?
Those refinancing into a lower rate may have more money to spend on paying down debt and other things. Many people seeking conventional or FHA loans will most likely need to have money for a down payment. This is where the VA interest rate advantage ... Conforming loan limits that allow for loans over $417000 in some high-cost counties. · Streamline refinance capabilities. For those who already have a VA loan refinancing for today's lower rates can be as easy as 1-2-3. ...
o Features 0% to 20% down payment options. o Usually fixed mortgage rates for 15 to 30 years or adjustable rate mortgages (ARMs). o Maximum conforming limit is $417000. Otherwise, it's a jumbo or non-conforming conventional loan. ...
Even if you currently have a conventional mortgage, you can refinance into an FHA loan if you meet the requirements. Overall, FHA loans provide more flexibility in credit, income, and equity/down payment requirements and is a good ...
First to Marty S. How come your answer to everyone is the same(I have a company who can do this contact me. Do you not know the answers yourself and are just trying to get anyone to call you and then see if you can handle the mortgage?).
To answer your question it would depend on a few factors. The most vital one is. What is your current credit score? If it is mediocre then I would place the minimum down and go FHA. If it is above 720 then I would place the 15% down and go conventional and submit a new appraisal about 1 year from now to have the PMI removed. Because with a FHA you must carry the PMI for a minimum of 5 years regardless of how much you place down.