FHA: 3.5% minimum down payment which can be a gift from a relative, fiancé or domestic partner.
Conventional: 5% minimum down payment. Previously the borrower was required to have 5% of their own funds for the down payment. Now it can be a gift from a relative, fiancé or domestic partner.
The PMI is usually lower for conventional financing than FHA. FHA doesn’t differentiate between FICO scores whereas Conventional rewards those with good credit scores. On a $200,000 mortgage the monthly PMI would breakdown as follows:
PMI FHA Conventional
760 FICO $225 $90
680 FICO $225 $150
Below are current market rates –
30 YR: 4.25% (APR 4.3%)
15 YR: 3.25% (APR 3.4%)
7 YR ARM: 3.375% (APR 3.4%)
3.75% (APR 5.8%)
30 YR Jumbo: