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Started By
Message
FHA Loan?
Posted on 6/6/13 at 8:26 pm
Posted on 6/6/13 at 8:26 pm
Wife and I moved due to a new job for me at the end of last year. Decided to rent our old house.
Looking to buy in our new area, but since we dont have 20% down, we are being told we should go the FHA route. Should we avoid this? On the one hand I HATE the thought of paying PMI, but I HATE paying rent as well..feel like I'm throwing money down the tubes. No other debt besides our old house.
Looking to buy in our new area, but since we dont have 20% down, we are being told we should go the FHA route. Should we avoid this? On the one hand I HATE the thought of paying PMI, but I HATE paying rent as well..feel like I'm throwing money down the tubes. No other debt besides our old house.
3
Posted on 6/6/13 at 8:41 pm to Furbs311
If you have good or even decent credit, you can get a conventional loan with less than 20% down.
Posted on 6/6/13 at 8:55 pm to JonTheTigerFan
Thats what I thought. Wife and I both have great credit. Though when I say less than 20% down, I mean probably 5% down.
Posted on 6/6/13 at 9:05 pm to Furbs311
quote:
Thats what I thought. Wife and I both have great credit. Though when I say less than 20% down, I mean probably 5% down.
Then do a 95/5 Conventional with upfront PMI
Posted on 6/6/13 at 11:00 pm to Furbs311
Avoid FHA loan if you hate PMI, because as of last month you can never get rid of it. It becomes a permanent fixture of the loan. You would have to refinance to get rid of it. Go conventional.
Posted on 6/6/13 at 11:59 pm to ItNeverRains
quote:
Then do a 95/5 Conventional with upfront PMI
Posted on 6/7/13 at 6:47 am to JonTheTigerFan
Ok. I might have to switch mortgage brokers then (or maybe do something like quicken loans?} cause this guy is telling me theres no way I can get a conventional loan with that little down, no matter how good my credit is
Posted on 6/7/13 at 6:59 am to Furbs311
quote:
Ok. I might have to switch mortgage brokers then (or maybe do something like quicken loans?} cause this guy is telling me theres no way I can get a conventional loan with that little down, no matter how good my credit is
Then ask him for his NMLS# and report him, because maybe he doesn't offer a 95/5 conventional package but they are probably the most common loan program going for 1st time buyers. To say there's no way it can be done is a lie. I would cut all ties with this individual immediately.
I would bet 90% or more of all local lending institutions do a 95/5 Conventional Loan. Make sure you pay PMI upfront
This post was edited on 6/7/13 at 7:02 am
Posted on 6/7/13 at 7:22 am to Furbs311
5% down conventional is definitely your loan.
Posted on 6/7/13 at 7:51 am to Furbs311
quote:
Ok. I might have to switch mortgage brokers then (or maybe do something like quicken loans?} cause this guy is telling me theres no way I can get a conventional loan with that little down, no matter how good my credit is
Yea I would say switch mortgage companies. Some don't want to do the 95/5.
Posted on 6/7/13 at 11:32 am to ItNeverRains
Does it matter that I'm not a first time buyer? We own another house (the one we moved from) and have it rented out.
Posted on 6/7/13 at 11:55 am to JonTheTigerFan
quote:
Then do a 95/5 Conventional with upfront PMI
Does this basically mean 5% down, finance the rest? How much are you having to come up with total, including the 5%, closing costs, and PMI because this is definitely something I will be considering.
Posted on 6/7/13 at 12:43 pm to CQQ
You can do 3 or 5% down and pay your pmi through a slightly higher interest rate. With that scenario you only have to bring down payment plus closing cost to the table... No additional for pmi. I recently did 3% down at 4.25 with no pmi. Could've gotten 4 on the interest rate if I would've put 5% down.
Posted on 6/7/13 at 5:42 pm to WhoGeaux
So how is paying pmi through a higher interest rate better than the fha with a lower rate?
Posted on 6/7/13 at 5:44 pm to WhoGeaux
Don't the rules change when u
you are buying your second home as the OP stated? I'm in the same situation and have been told by a Wells Fargo lender that we have to put 20 percent down.
you are buying your second home as the OP stated? I'm in the same situation and have been told by a Wells Fargo lender that we have to put 20 percent down.
Posted on 6/7/13 at 6:13 pm to Furbs311
quote:
Does it matter that I'm not a first time buyer? We own another house (the one we moved from) and have it rented out.
No.
Price it out over the life of loan with fees and PMI. Don't be fooled by the shiny object which is lower interest rate. That rate is very expensive
Posted on 6/7/13 at 8:59 pm to JonTheTigerFan
Are you buying in a RD eligible area? LINK
Posted on 6/8/13 at 7:30 am to novabill
quote:
Are you buying in a RD eligible area?
A few houses we are looking in apparently are. What does this mean?
Posted on 6/8/13 at 9:05 am to Furbs311
Ran the numbers and the cost of pmi was a substantial net add when compared to just taking a .375 increase on interest rate. Make sense?
Posted on 6/9/13 at 12:57 pm to WhoGeaux
5% down conventional is the product you are looking for
This post was edited on 6/9/13 at 12:57 pm
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