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FHA 203(b) vs. Conventional 95% Mortgage
This form allows you to compare two choices for first time buyers with
little money down, the
FHA 203(b) program and a conventional 95% LTV loan.
| | FHA 203(b) | Conv 95
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|---|
| Sales price | 0.00 | 0.00
| | Loan Interest Rate3 | 6.250 % | 6.000 %
| | Down Payment | 0.00 | 0.00
| | Closing Costs (3% of Sale Price) | 0.00 | 0.00
| | Loan Base | 0.00 | 0.00
| | + UFMIP (2.25% of FHA Loan) | 0.00 | 0.00
| | Loan Amount | 0.00 4 | 0.00
| | Monthly Principal+Interest | 0.00 | 0.00
| | Monthly Prop Tax+Home Insurance5 | 0.00 | 0.00
| | Monthly PITI | 0.00 | 0.00
| | Monthly Mortgage Insurance | 0.00 | 0.00
| | Total Monthly Payment | 0.00 | 0.00
| | Minimum Cash Required6 | 0.00 | 0.00
| | Initial Equity | 0.00 | 0.00
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Footnotes
This calculation has been written with assistance from
HUD and is still in test mode.
These numbers are for comparison purposes only.
- Based on income only (29% FHA, 28% Conventional)
- Based on income and debt payments (41% FHA, 38% Conventional)
- FHA interest rate is typically 1/4 point higher than Conv 95 rate
- Subject to
FHA maximums in your area
- Based on annual property tax and insurance payment of $ati % of sales price
- May include cash gifts from friends or family. For Conv 95 initial 5%
(\$ $d_fnma) must belong to borrower(s).
Assumptions
- Appraised value = Sales price
- Calculations are based on a 30 year fixed rate loan
FHA highlights
- entire amount of cash requirements may be gifted or
borrowed (certain guidlelines)
- credit underwriting guidelines accommodating to less than
perfect history
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