Despite the veritable murkiness of the rules regulating the mortgage industry, every week I get asked the same questions from Realtors about down payments. So every week these questions just reinforce the fact that there’s still confusion and that the mindset that “FHA is the only way” still exists.
In the wonderful world of mortgages everyone’s story is different and things are not always what they appear to be. Ironies exist. The assumption that you’ll come out ahead by financing with an FHA mortgage is not necessarily true.
Conventional loans with 5% down do exist and are still the gold standard as far as I’m concerned. With no upfront costs and a much lower monthly mortgage insurance payment to contend with, you still come out better off even with the extra 1.5% down.
At the end of the day, if your client is planning on occupying the property themselves, the conventional is truly their best bet across the board. Nessie does exist and so do great home financing solutions.