Which is a better loan- FHA or conventional

FHA Update 2013

Fha just lowered the cost of mortgage insurance by 12 point so that makes payments lower. They also reinstituted the 3% down payment so if cost is then important thing, it’s a good deal.

FHA is also good if you have a lower fico score and your debt to income ratio is high. Conventional lenders set it at 45%. FHA wll be more lenient if your other financials look good. In addition, FHA is more tolerant of student loan debt.

So if you have a fico above 720 and 5% to put down, and a dti below 45%, conventional would be better. Otherwise check out fha.

Of course, this is for homeowner loans. Non-owner occupied are not the same and they limit it you to 44- usually..