FHA vs. Conventional Loans by Kevin Budde

A Comparison of FHA 96.5% and Conventional 95% Loan to Values

FHA 3.5% Down Payment

$400,000 Sales Price Key Points on FHA

$ 14,000 Down Payment

$386,000 Loan Amount 45% Debt to Income is allowed

1% Added to Loan Amount ($3,860)

$2,033 Principal and Interest 4.750% for Up-Front Mortgage Insurance

$ 369 Mortgage Insurance 1.15% 620 Credit Score Allowed

$ 366 Property Tax 1.1% Income to Qualify in This Example;

$ 75 Hazard Insurance $6,317 Monthly or $75,804 Annual

$2,843 Total Down Payment May Be a Gift

Conventional 5% Down Payment

$400,000 Sales Price Key Points on Conventional

$ 20,000 Down Payment

$380,000 Loan Amount 41% Debt to Income Required

No Amount Added to Loan Amount

$2,010 Principal and Interest 4.875% for Mortgage Insurance

$ 297 Mortgage Insurance .94% 720 Credit Score Required

$ 366 Property Tax 1.1% Income to Qualify in This Example;

$ 75 Hazard Insurance $6,720 Monthly or $80,424 Annual

$2,748 Total No Gift for Down Payment Allowed

For additional information please contact a member of the Kevin Budde Team