Should I get a conventional loan or FHA with a 5% down payment?

If you have excellent credit, income, and reserves, then yes.. conventional should be cheaper, however if you have a low credit score, or lower income which in-turn would result in higher Debt to Income Ratios, then FHA might be the better way to go.. FHA's rate will be lower, but overall payment will be higher.. if you want to know for sure, then the best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. He can also put together a side by side comparison with FHA and Conventional for you to see for yourself the differences... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You would receive a lower interest rate if you went FHA. However you wouldn't have the upfront mortgage insurance or monthly insurance payment. If you have the scores to qualify I would say you should go conventional. If you have further questions contact me directly.

conventional is cheaper monthly mortgage insurance AND no upfront mortgage insurance

Short answer is YES if you have all the funds needed and your ratios meet conventional guidelines as your OVERALL payment will be less....your rate is higher with conventional though you save on the MI costs.....

We cover NY so if you would like to reach out to us we can run the numbers for you both ways and see what is a better option for you. 201-962-3555. Team@BestMortgageOption.com