with higher down payment, better to go with fha or conventional?

Assuming you want to put 20% down, conventional is a no-brainer over FHA in my opinion. FHA loans have upfront and monthly mortgage insurance. Conventional rates are currently a little higher than FHA rates, but the absence of mortgage insurance more than makes up for the difference.

Just because you have 20% down does not mean that you should use it all. Your down payment amount should be based on what you can comfortably afford for a down payment, the amount of reserves that you will have after closing, the amount that you may need to upgrade your home, etc... If you can afford to avoid FHA, that is generally a good thing, as the LIFETIME Mortgage Insurance Premium on FHA is a double whammy, with an upfront fee, and an annual fee to boot. Depending on your credit score, you may be better served doing a conventional loan with anywhere from 5%-20%+ down. Another thing to look at is what your money can do for you instead of sitting idly in equity. If you have further questions, please feel free to call me at 281.841.1723. Thanks, Rich

Do you have a second to speak today? I can walk you through your options. Louis Balady214-722-2650lbalady@townsquarefinancial.com

If you can afford to put 20 percent down on your home purchase, then a conventional loan is generally a better choice than an FHA loan because of private mortgage insurance. With an FHA loan you will be required to pay for private mortgage insurance for the entire life of the loan. However, with a conventional loan mortgage insurance will not be required if you are able to put 20 percent down. Without having to pay mortgage insurance you will be able to put more towards your principal and interest.

With 20% down payment, go conventional.

With a downpayment anywhere from 5% up, often (usually) a conventional mortgage is a much better option due to the very high cost of FHA mortgage insurance (PMI) which is paid for the ENTIRE length of the mortgage - it never goes away on a 30 year loan. There are ways to eliminate the monthly PMI on a conventional loan other than 20% down; discuss your options with a knowledgable and reputable mortgage lender.