⚡ Quick Selection Guide
If
Credit 660+, putting 20%+ down → Conventional
If
Minimum down with sub-740 credit → FHA
If
Credit 740+, less than 10% down → Conventional (better MI)
If
Less than 10% down, credit below 740 → FHA often wins
If
Active military / Veteran → VA — no MI, 0% down
If
Rural area, income-qualified, 0% down → USDA
Conventional
Fannie Mae / Freddie Mac
Min down (FTHB)
3%
Min down (all others)
5%
Min credit score
620
Front-end DTI max
Varies (up to 49%*)
Back-end DTI max
49.99%
Mortgage Insurance
<20% down only
Remove MI
Yes — at 20% equity
AUS system
DU (Fannie) / LP (Freddie)
FHA
Federal Housing Authority
Min down payment
3.5%
Min credit (3.5% down)
580
Min credit (10% down)
550
Front-end DTI max
46.99%
Back-end DTI max
56.99%
Annual MIP rate
0.55% (flat)
Upfront MIP (UFMIP)
1.75% rolled in
Remove MI
No — life of loan
VA
Veterans only — COE required
Min down payment
0%
Min credit (0% down)
580
Min credit (10% down)
550
DTI max
No official max*
Mortgage Insurance
None
Funding fee
2% – 3.6%
Disabled veteran
Fee waived
AUS system
DU (via FHA Scorecard)
USDA
Rural / income-qualified
Min down payment
0%
Min credit score
580
Front-end DTI max
29%
Back-end DTI max
41%
Annual MI rate
0.20% (flat)
Upfront fee
1.00% rolled in
AUS system
GUS
Property requirement
USDA-eligible area
📐 Conventional PMI — Approximate Monthly Factors
MI is a sliding factor based on credit score, LTV, and DTI. These are approximations — always pull actual MI quote in Arive.
| Down Payment | Approx MI Factor (Annual) | Monthly (on $300K loan) | Arive Calc |
|---|---|---|---|
| 3% down | ~0.85% | ~$213/mo | Loan Amt × 0.85% ÷ 12 |
| 5% down | ~0.60% | ~$150/mo | Loan Amt × 0.60% ÷ 12 |
| 10% down | ~0.40% | ~$100/mo | Loan Amt × 0.40% ÷ 12 |
| 15% down | ~0.275% | ~$69/mo | Loan Amt × 0.275% ÷ 12 |
| 20%+ down | No MI required | ||
* Front-end DTI up to 49% is possible on very low-risk Conventional loans. DTI is risk-weighted — higher credit + large down payment creates more flexibility.
⚡ Quick PMI Estimate
Loan amount
Down payment
⛔ FHA Flip Rules
90-Day Rule: FHA cannot be used if the home's deed changed ownership within the last 90 days. No exceptions.
180-Day Rule: If the home is being resold for more than 100% of its recent purchase price within 180 days of the prior sale — a second appraisal is required. Buyer cannot pay for the second appraisal.
🔍 Appraisal Requirements
Conventional
Standard appraisal — cosmetic issues generally not required to be remedied.
FHA / VA
Stricter requirements — appraiser will flag chipped paint, rotted wood, broken windows, exposed wiring, and other safety/structural concerns. These must be repaired before closing.
⚠️ VA appraisals tend to be the most conservative. Sellers often prefer Conventional for this reason.
🏡 Florida Homestead Exemption
For primary residences: reduces the assessed value by $50,000 and caps annual tax increases at 3% per year. Buyer must apply with the county after closing. Applies to taxes starting the following year.