Is FHA bad if I have 20 percent down?
FHA with 20% down is not automatically bad, but Conventional usually deserves the first look. A new 30-year FHA loan still has upfront mortgage insurance and generally 11 years of annual mortgage insurance at this loan-to-value. Conventional with 20% down usually avoids private mortgage insurance.
What this actually means.
If the credit and full file work for Conventional, compare that option first. FHA may still be useful when its approval or pricing solves a problem that Conventional does not. Compare the complete payment, APR, cash needed and expected time in the loan.
Where this can move.
Credit score, down payment, LTV, expected hold period, mortgage-insurance economics, and property type can change which loan wins for your file.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.