Conventional 97 Loan (PMI, escrow, credit score, property)

[Vic From COH]

What's the benefit of getting this loan compare to say a FHA loan?

What are the qualifications for this loan if living in Texas?

Really appreciate the answers!


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[Pfhtex]

Conventional-97 is awesome if you have a strong credit score. Conventional Mortgage Insurance offers friendlier terms, the higher score you have. You will have to have your taxes and insurance escrowed into your payment, but it's a great way to avoid higher, and now-permanent, FHA Mortgage Insurance.

Let me know your middle credit score, purchase price, and property type, and I can show you the differences more specifically.

[Vic From COH]

Thanks pfhtex!

Scores 720-740
Price $187,000
Property type Single Family Residential.

Also new home buyer, home will be primary resident.

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[SmartMoney]

I agree, the OP is a perfect candidate for 97% conventional and should also look into LPMI, were the PMI is in the rate. Beats FHA by a mile. Only reason to go FHA today is for troubled credit.