+1 vote
asked Aug 9 in Buying a Home by anonymous

1 Answer

0 votes
It depends. If you have high balance on student loans, then conventional loans would be better because conventional allows Income Based Repayment (IBR) where FHA takes 1% of the outstanding loan balance and uses that as hypothetical debt. If you have higher debt to income ratios, FHA would be better because FHA allows up to 56.9% debt to income ratio where conventional only allows max 50% DTI.
answered Aug 9 by GustanCho (106,540 points)

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