Conventional vs FHA question

[delta18]

I have been trying to find the answer to this and was wondering if the collective wisdom here could offer their take.

 

My DW and I just applied for a mortgage pre-approval. We went with a conventional and were going to keep it in DW's name (because she has excellent credit). Turns out we forgot that we were looking to buy in Nevada (a community property state) and so my credit (not bad but not great either and with high utilization) was included. Thus we qualified for a rate of 5%. I was wondering if anyone new whether it makes more sense to stick with the conventional loan at 5% or go with an FHA loan at 3.5%?

 

I have heard that FHA's new rules come in to play on June 1st that say you need to carry MI for the life of the loan if this factors in.

 

Any thoughts are appreciated.

 

D

[DallasLoanGuy]

spouse credit doesnt need to be added to a conventional loan if you arent using that spouse's income.... that is an fha guideline, not a conv guideline.

if the lender wants spouse credit on the loan.... then find another lender.

[Brian B The Loan Professor]

plus 1

community property is only used for Govt loans

 

If that were the case the lower rate fha with MIP would still be better than 5%

B