Hello Everyone 
It's been a long time since I've posted on this forum, oh how my life as changed (good changes) since I've been on here. Needless to say my life a couple years ago was a lot more simple than it was before lol. Before my biggest problem was picking out a wax to use on my car that I was going to be cleaning all weekend lol. Now my car is lucky if it gets gas in it lol.
Anyway, my life is starting to come together. My career is doing pretty good, and I will be getting married in a year from June. Needless to say, my title is where I seek some advice. I've been looking to buy a home for a good 6 months now. As each month passes, I'm more and more serious about it, due to the fact that the rates are great, and I eventually will need to move out lol. Lately it's just been a matter of finding exactly what I want.
My question is more of a financial one, but I'm wondering if anyone has experience with these two loans, and can shed some light? I read that FHA loans are good if you don't have great credit or a lot to put down, but you have more fees, as well as have to pay a MIP (Monthly Insurance) for 5 years regardless. Where as a conventional loan is harder to get, usually requires 20% down payment, but you don't pay as many fees, and you don't have to pay a PMI once your at 20% of owning the home.
My situation allows me to kind of go either way with these loans. I want to get the loan that allows me to pay the least amount at the end of it all. I'd like to put down 20% for a down payment, so I was thinking a conventional loan would be good in that I won't be paying extra fees not going to my principal.
But, and here is the big BUT, I was reading online that some people we're getting lower interest rates with an FHA loan vs a conventional loan. I just wanted to know if there was any true to that, and why? I always figured it would be the opposite, since FHA loans are setup with people who have lower credit, that the interest rate would be higher, similar to car loans.
So now I'm a little confused as to which loan to go for, and what would be the best bet. Although the FHA loan will have more fees, if it's even 0.50% lower interest rate, I feel that would probably balance it out in comparison to a conventional, maybe even make it cheaper.
Any information would be greatly appreciated.
For anyone interested in knowing, I plan on doing a 20% down payment. I have 0 debt, 0 loans, my car has been paid off since I bought it in 2005, and a pretty high credit score. Same deal with my fiance, no loans, car paid off, no debt whatsoever. So I'm trying to figure out what would be the best option for us in the long run. Where looking at houses that we're gonna stay in for the long term. Not looking to get in and attempt to 'flip' after a few years.
Thank you very much for any help in advance!
I've been doing some research, but would prefer to hear from actual people now.
It's been a long time since I've posted on this forum, oh how my life as changed (good changes) since I've been on here. Needless to say my life a couple years ago was a lot more simple than it was before lol. Before my biggest problem was picking out a wax to use on my car that I was going to be cleaning all weekend lol. Now my car is lucky if it gets gas in it lol.
Anyway, my life is starting to come together. My career is doing pretty good, and I will be getting married in a year from June. Needless to say, my title is where I seek some advice. I've been looking to buy a home for a good 6 months now. As each month passes, I'm more and more serious about it, due to the fact that the rates are great, and I eventually will need to move out lol. Lately it's just been a matter of finding exactly what I want.
My question is more of a financial one, but I'm wondering if anyone has experience with these two loans, and can shed some light? I read that FHA loans are good if you don't have great credit or a lot to put down, but you have more fees, as well as have to pay a MIP (Monthly Insurance) for 5 years regardless. Where as a conventional loan is harder to get, usually requires 20% down payment, but you don't pay as many fees, and you don't have to pay a PMI once your at 20% of owning the home.
My situation allows me to kind of go either way with these loans. I want to get the loan that allows me to pay the least amount at the end of it all. I'd like to put down 20% for a down payment, so I was thinking a conventional loan would be good in that I won't be paying extra fees not going to my principal.
But, and here is the big BUT, I was reading online that some people we're getting lower interest rates with an FHA loan vs a conventional loan. I just wanted to know if there was any true to that, and why? I always figured it would be the opposite, since FHA loans are setup with people who have lower credit, that the interest rate would be higher, similar to car loans.
So now I'm a little confused as to which loan to go for, and what would be the best bet. Although the FHA loan will have more fees, if it's even 0.50% lower interest rate, I feel that would probably balance it out in comparison to a conventional, maybe even make it cheaper.
Any information would be greatly appreciated.
For anyone interested in knowing, I plan on doing a 20% down payment. I have 0 debt, 0 loans, my car has been paid off since I bought it in 2005, and a pretty high credit score. Same deal with my fiance, no loans, car paid off, no debt whatsoever. So I'm trying to figure out what would be the best option for us in the long run. Where looking at houses that we're gonna stay in for the long term. Not looking to get in and attempt to 'flip' after a few years.
Thank you very much for any help in advance!
I've been doing some research, but would prefer to hear from actual people now.