Conventional vs. FHA

With private mortgage insurance being so expensive over the past few years, it never made since to compare a FHA 3.5% down payment loan to a Conventional 5% down payment loan. Now with changes to FHA's monthly mortgage insurance, and the fact that private mortgage insurance is getting cheaper, this is a comparison that many lenders are not looking at, which could save their clients a good chunk of money each month. As you can see below, the Conventional 5% down can save the buyer over $90 a month vs FHA, on a $100,000 sales price. Make sure if you are looking at buying a home right now that you get this comparison, so you know what option is going to be right for you and your family.