topic Re: just need "clarification" in Mortgage Loans
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707294#M106358
<BLOCKQUOTE><HR />ledzep75 wrote:<BR /><P>I plan to apply for FHA 15 yr. fixed in Febuary. Purchase price is $85000 . With the required 3.5% down that would leave the "balance" financed arround $82000. When looking at FHA's required front end and back end ratios % ( .31 and .43), do lenders use the initial purchase price ($85,000) or the amount after the 3.5 is applied ($82,000) ?Thanks</P><HR /></BLOCKQUOTE><P>The lender will not use $82k. It is your purchase price less your down payment amount plus the UFMIP (upfront mortgage insurance premium) then that figure is the one that the amortization is calculated upon.</P><P> </P><P>As to the ratios: it is not 31% and 43%. each lender is different, but I see back end ratio's as high as 55% regularly. Check with your lender to find out what ratios they use and what maximum ratios they will consider.</P>Sun, 18 Nov 2012 22:51:34 GMTStartingOver102012-11-18T22:51:34Zjust need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707130#M106348
<P>I plan to apply for FHA 15 yr. fixed in Febuary. Purchase price is $85000 . With the required 3.5% down that would leave the "balance" financed arround $82000. When looking at FHA's required front end and back end ratios % ( .31 and .43), do lenders use the initial purchase price ($85,000) or the amount after the 3.5 is applied ($82,000) ?Thanks</P>Sun, 18 Nov 2012 21:04:12 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707130#M106348ledzep752012-11-18T21:04:12ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707142#M106349
The use what your payment will be....the are normally only a few bucks off what your actual payment will beSun, 18 Nov 2012 21:08:48 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707142#M106349beb862012-11-18T21:08:48ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707152#M106351
<P>So they will base what my payments will be from the $82,000 (the amount actualy being financed) sounds good. Thanks</P>Sun, 18 Nov 2012 21:19:27 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707152#M106351ledzep752012-11-18T21:19:27ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707158#M106352
Yes; they will use payment. Remember your payment will have taxes; insurance; and an Fha fee every month... so be sure to include that when you calculate DTI.Sun, 18 Nov 2012 21:22:28 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707158#M106352webhopper2012-11-18T21:22:28ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707172#M106354
<P>I understand about the taxes and insurance in DTI (Iv'e been "playing with the FHA calculator on their website). However this is the first Iv'e heard regarding an FHA "monthly fee " . What exactly is this? Thanks</P>Sun, 18 Nov 2012 21:34:19 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707172#M106354ledzep752012-11-18T21:34:19ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707262#M106357
<BLOCKQUOTE><HR />ledzep75 wrote:<BR /><P>I understand about the taxes and insurance in DTI (Iv'e been "playing with the FHA calculator on their website). However this is the first Iv'e heard regarding an FHA "monthly fee " . What exactly is this? Thanks</P><HR /></BLOCKQUOTE><P> </P>Fha mortgage insurance premium fee that is added to your monthly payment. The other Fha fee is the upfront mortgage insurance premium. Here is a website that may explain it a little better. <A target="_blank" href="http://budgeting.thenest.com/calculate-fha-mortgage-insurance-premium-3286.html">http://budgeting.thenest.com/calculate-fha-mortgage-insurance-premium-3286.html</A>Sun, 18 Nov 2012 22:29:53 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707262#M106357webhopper2012-11-18T22:29:53ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707294#M106358
<BLOCKQUOTE><HR />ledzep75 wrote:<BR /><P>I plan to apply for FHA 15 yr. fixed in Febuary. Purchase price is $85000 . With the required 3.5% down that would leave the "balance" financed arround $82000. When looking at FHA's required front end and back end ratios % ( .31 and .43), do lenders use the initial purchase price ($85,000) or the amount after the 3.5 is applied ($82,000) ?Thanks</P><HR /></BLOCKQUOTE><P>The lender will not use $82k. It is your purchase price less your down payment amount plus the UFMIP (upfront mortgage insurance premium) then that figure is the one that the amortization is calculated upon.</P><P> </P><P>As to the ratios: it is not 31% and 43%. each lender is different, but I see back end ratio's as high as 55% regularly. Check with your lender to find out what ratios they use and what maximum ratios they will consider.</P>Sun, 18 Nov 2012 22:51:34 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707294#M106358StartingOver102012-11-18T22:51:34ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707370#M106360
<P><FONT face="comic sans ms,sans-serif">FHA will charge you PMI until it has both been 5 years and you've paid the balance down to 78% of the value. For my house, it is 78% of the purchase price - my appraisal was about 20k more than the purchase price and my loan was for another 9k on top of that, so I've got a long way to go to get out of my FHA PMI. (The reason the values are all so different is because I have an FHA rehab loan.) <BR /></FONT></P><P><FONT face="comic sans ms,sans-serif"> </FONT></P><P><FONT face="comic sans ms,sans-serif">In short, when the balance of your mortgage is at 78% of your purchase price or your appraisal value, whichever is smaller, you can stop paying PMI. <BR /></FONT></P><P> </P>Sun, 18 Nov 2012 23:54:16 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707370#M106360mauve2012-11-18T23:54:16ZRe: just need "clarification"
http://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707624#M106375
<BLOCKQUOTE><HR />StartingOver10 wrote:<BR /><BLOCKQUOTE><HR />ledzep75 wrote:<BR /><P>I plan to apply for FHA 15 yr. fixed in Febuary. Purchase price is $85000 . With the required 3.5% down that would leave the "balance" financed arround $82000. When looking at FHA's required front end and back end ratios % ( .31 and .43), do lenders use the initial purchase price ($85,000) or the amount after the 3.5 is applied ($82,000) ?Thanks</P><HR /></BLOCKQUOTE><P>The lender will not use $82k. It is your purchase price less your down payment amount plus the UFMIP (upfront mortgage insurance premium) then that figure is the one that the amortization is calculated upon.</P><P> </P><P>As to the ratios: it is not 31% and 43%. each lender is different, but I see back end ratio's as high as 55% regularly. Check with your lender to find out what ratios they use and what maximum ratios they will consider.</P><HR /></BLOCKQUOTE><P> This is all correct, each lenders overlay will vary, If you stay under 45% on the back end you should be safe with any lender, but as stated some will allow higher ratios.</P><P> </P><P> To calculate the UFMIP mutiply the amount of the loan(if you pay just 3.5% down) 79,130 X .015 = 1189.95 so your total loan amount will be 80,316.95. If you can swing a larger down payment to bring the LTV below 80% you can skip on paying the mortgage insurance monthly, which is rather pricey. (about $60 a month if you go with a 30 year note)</P><P> </P><P> </P><P> </P><P> </P>Mon, 19 Nov 2012 03:11:15 GMThttp://ficoforums.myfico.com/t5/Mortgage-Loans/just-need-quot-clarification-quot/m-p/1707624#M106375MyCreditSucksTheMost2012-11-19T03:11:15Z