Financial Calculators

FHA 203(b) vs. Conventional 95% Mortgage

This form allows you to compare two choices for first time buyers with little money down, the FHA 203(b) program and a conventional 95% LTV loan.

Change these fields as desired:

Your monthly income
Your monthly debt payments
Your current cash in hand
Cash Available from Gifts
30 Yr Fixed Interest Rate (%)
Annual Property Tax + Insurance (%)

	FHA 203(b)	Conv 95
Sales price	0.00	0.00
Loan Interest Rate3	6.250 %	6.000 %
Down Payment	0.00	0.00
Closing Costs (3% of Sale Price)	0.00	0.00
Loan Base	0.00	0.00
+ UFMIP (2.25% of FHA Loan)	0.00	0.00
Loan Amount	0.00 4	0.00
Monthly Principal+Interest	0.00	0.00
Monthly Prop Tax+Home Insurance5	0.00	0.00
Monthly PITI	0.00	0.00
Monthly Mortgage Insurance	0.00	0.00
Total Monthly Payment	0.00	0.00
Minimum Cash Required6	0.00	0.00
Initial Equity	0.00	0.00

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Footnotes

This calculation has been written with assistance from HUD and is still in test mode. These numbers are for comparison purposes only.

1. Based on income only (29% FHA, 28% Conventional)
2. Based on income and debt payments (41% FHA, 38% Conventional)
3. FHA interest rate is typically 1/4 point higher than Conv 95 rate
4. Subject to FHA maximums in your area
5. Based on annual property tax and insurance payment of $ati % of sales price
6. May include cash gifts from friends or family. For Conv 95 initial 5% (\$ $d_fnma) must belong to borrower(s).

Assumptions

• Appraised value = Sales price
• Calculations are based on a 30 year fixed rate loan

FHA highlights

• entire amount of cash requirements may be gifted or borrowed (certain guidlelines)
• credit underwriting guidelines accommodating to less than perfect history