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Updated almost 9 years ago,
FHA with DPA vs Conventional with DPA
I need some feedback. My lender sent me two different loans that I qualify for a property that's going to be my primary residence and I'm going to fix it up and in 2 years I'm going to sell it. So we qualify for GFSI. For the first options it's FHA with DPA and my total cash I need to put upfront is $ $7490 ( down payment, closing costs, prepaid escrow reserves). My monthly payments will be $1404 but only $980 goes to principal. So after two years my total loan amount would be $23531 less when I sell. For the conventional with DPA I need to put $10,830 upfront( more than fha upfront) and my mortgage payments would be $1413 but $1019 would go to the principal so after two years my loan amount would be $24460 less. I've put everything on my excel sheet and if the numbers are right the fha is a Better option because after everything it's about $2400 less and I would have to use less money upfront. I was just wondering if I can get son of you to verify the numbers and if there's any feedback I would appreciate it.