I am a first time home buyer. My home-buying credit score is 620. I was recently preapproved for an FHA loan with my bank. The interest rate is decent at 3.75%, the only issue is I will have to pay mortgage insurance of $2400 a year for the life of the loan (30years), regardless of the down payment amount.
On the other hand, with a conventional loan, if I put 20%+ down, I don't have to pay mortgage insurance, so I'll save that $2400/yr on mortgage insurance. Although, because my credit score is not great, my interest rate with a conventional loan will be 4.5 and It'll be harder for me to get approved.
Given my situation, I was wondering if it makes sense to apply for a mortgage with credit unions? Is there a good chance they can beat the 3.75% interest rate and omit the mortgage insurance? Are there any tips/tricks for finding a good credit union and getting the best mortgage package, given my credit score? Note my debt is little to none and my income is 100k+, so hopefully that'll help cancel out the less-than good credit score. Appreciate any suggestions.
I was looking at the following credit unions: