FHA or Conventional loan

[Adonis Yancey]

For an investor who is house hacking which loan option is better? Conventional or FHA. I learned that typically for FHA you can put down 3.5% but for conventional you can put down 3%. For the FHA you get charged twice for Mortgage insurance which are upfront and monthly. For the conventional you only get charged monthly for mortgage insurance. Also I read that on average the interest rate for FHA is lower than the interest rate for conventional but I also read that your credit score helps to determine if you get a low interest rate so is it also possible if you have good credit that you could get the same or better interest rate with conventional?

[Rick Albert]

It really depends on what you qualify for and long term goals. 3% conventional has lower loan limits and each county is different. Keep in mind with FHA the mortgage insurance is on it for the life of the loan. The only way to remove it is to refinance. On my second house hack, I did the FHA 203(k), then did the FHA streamline refinance, and then did another refinance into a conventional loan.