Need Advice Conventional loan vs Fha – Some questions about lenders

Tips and Deals Forums Home Mortgage Need Advice Conventional loan vs Fha – Some questions about lenders

This topic contains 0 replies, has 1 voice, and was last updated by  Anonymous 7 years, 2 months ago.

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    Anonymous

    I really love myfico site because it has LOTS of great information for first time home buyers like ME. So thanks.
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    Here is my background info. before i get to my questions:
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    Salary: 80K for me.(4 Year old job.) * Wife:40K( New job – 6 months
    Savings: around $25K in bank
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    Getting gift for down payment around $30K (with gift letter from dad)
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    My Fico: 765 + all three* ( No bad accounts)
    My wife’s Fico: 700+ all three** (With 2 late payments 3 years OLD.)
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    For me: No CC deb. No loans*
    but i have co-sign my dad’s car so it is on my credit report. $450 per month
    For my wife:* Student loans about $400 per month
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    Looking for house around $400K or below
    Planning to put 10% down payment and rest is loan.
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    So here is my question 1:* Which loan would be good? Conventional loan or Fha ?
    As per my understanding, Conventional loan does not accept down payment gifts( Please correct me if I am wrong.). And you can get gift DP in FHA loan with gift letter( Please correct me if I am wrong.).
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    BUT I was talking to wells fargo loan officer and he told me that they allow GIFT money as down payment in Conventional loans if at least 5% of down payment money is coming from your personal savings.*
    This is where I am really confused if this is TRUE or NOT?
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    If it is true than I think I can save some money in PMI in compare to FHA loan. He told me that if I take Conv. Loan of 360K than PMI will be about $180 per month. And if I take FHA loan than MPI will be $355 per month.
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    So if You all Expert of myfico forum can share some more light on this than it will be great help.
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    Also if i take Conv. loan than bec of my wife FICO i may have to pay more intrest rate. but I can terminate PMI sooner than FHA 5 years minimum requirement. (this is was loan officer told me So let me know if this is true or not)
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    So first question: is it true that you can have gift DP in Conv. loan? and if yes than is it better to take conv. loan than FHA?
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    please share you expertise on this.
    Thank you
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