Can you pay the difference between the county maximum for an FHA loan

[Angel Alicea]

Hello there,

I am currently considering purchasing a property in Palm Beach County Florida. The FHA loan limit is $621,000. The property I was going to buy is about $650,000. I was wondering if I paid the $29,000 difference(not including my percent down) could it still be eligible for a conventional 3.5% down FHA Loan?

[Zach Wain]

@Angel Alicea - You would need $29k down total and you are good to go regarding loan size. That would be your total downpayment. Base loan size of $621,000. FHA has up front PMI that gets financed on top of the loan size, so your final loan size will be larger.

If you have any questions on how FHA loans work reach out anytime! There are a few important parts, like up front PMI/monthly PMI/underwriting guidelines that are worth reviewing. Sometimes, conventional loans offer better deals if you have excellent credit. You could do as little as 3% down since the conventional loan size is higher, $766,550...

That means you would only need to put down $19,500 for 3% down. That is something to consider as well. Great credit is needed for conventional to beat FHA