FHA vs Conventional for an owner occupied Duplex

[Bishoy Takla]

Hello Biggepocketers, 

This is my first post and I am finally getting my feet wet. 

I am considering an owner-occupied Duplex and I got these two mortgage quotes:

FHA:                  5% down - 3.375% - fee: $400 - Monthly PMI is .85% - upfront PMI 1.75% -

Conventional: 5% down - 4.375% - fee: $1200 - Monthly PMI is .27%

(this is Homepossible program)

First I thought the FHA lower rate is more favorable but after considering the PMI and the upfront PMI, I think the higher rate for the conventional will work out better for the long term especially when considering the PMI for the life of the loan and cost of refinancing.

My assumptions are that current Rates are at their lowest and not expecting lower rates in 5 years for refinancing and my goal is to keep the duplex for the long term.

let me know if there is anything I am missing or should consider

[Ramon Flores]

@Bishoy Takla It's hard to recommend something without having all the numbers. If you can, I would suggest 20% down and conventional. It also depends on your location, reserves, prices, appreciation, cashflow, etc. When you put 20% down you would get rid of the PMI which can add up to a lot.