Eldengames OP t1_iydahin wrote on November 30, 2022 at 3:34 PM

Reply to comment by lucky_ducker in Trying to Buy First House But Feel Like My Loan Just Isn't Right by Eldengames

I'm thinking of getting a new job here shortly and I'm probably expecting to move my income up to around 60-70k. We just wanted to move first because my wife and I currently drive (carpool) 45 minutes to work. Is a conventional loan something I should look into instead? Or can I refinance into that later?

They did offer the ability to refinance on their dime as long as its within 3 years so that would fit my time line for a new job and my wife's credit score should recover as well. Do conventional loans have MIP?

lucky_ducker t1_iydjwv0 wrote on November 30, 2022 at 4:37 PM

Conventional loans (generally) require the equivalent PMI if your down payment is less than 20%. Most of them allow you to drop the PMI once your loan balance is less than 78% of appraised value, or in some cases, the original purchase price.

I originally financed FHA in 2007 (only did 3.5% down) and in 2020 refinanced into a conventional loan at 2.5%. No PMI or MIP now.