• Adam

    Thanks for the informative article! I had never considered and FHA before this article.

  • http://www.moneylifeandmore.com/ Lance@MoneyLife&More

    Just because FHA mortgages exist doesn’t mean they are a great idea. The higher limits on on % of income and lower credit scores just mean increased costs and potential to set up for failure. While FHA mortgages can be used responsibly these are the types of tools that can get people in over their head in my opinion.

  • http://www.ohiofha.com/ Ohio FHA Mortgage

    The major downside to FHA mortgages is the monthly mortgage insurance premium (MIP) compared to a Conforming/Conventional mortgage. 740+ credit score on a Conventional loan would be roughly 0.59%, whereas an FHA mortgage would require 1.25%. So while a home owner may get a lower rate with FHA, and spend about 1.5% less (down payment) the monthly payment on an FHA loan would still be higher.

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