topic Re: Possible FHA loan questions. in Mortgage Loans

Possible FHA loan questions.

miltown81 — Wed, 26 Dec 2012 18:21:47 GMT

Hey folks. Can someone give me some feedback on what most people look at in terms of APR, Interest, PMI, etc. on an FHA loan for the following situation? I am seriously considering purchasing a home this summer but want to see what others think. I don't have a "set" range for a home but would think that I want to keep it under $135K. I live in Waukesha, WI.

Current FICO score: 723, Income: 55K base +6k avg bonus, CC debt: 0, Auto Loan: 12,500. I have little money to put down as most of my discretionary money goes to retirement funds (401k, IRA & VUL). Any thoughts or insights on what costs/rates I'd be looking at? Any help is appreciated! Thanks!

Re: Possible FHA loan questions.

tooleman694 — Wed, 26 Dec 2012 19:20:13 GMT

Any reason why you want to go FHA? you are a perfect fit for conventional.

With FHA you are probably lookn at a low 3.25 rate or so. I think PMI would be like 130ish a month.

You go conventional, you could get the PMI gone.

Re: Possible FHA loan questions.

miltown81 — Thu, 27 Dec 2012 18:16:04 GMT

I'm honestly tired of renting and getting that "itch" to own a home. I was thinking of FHA because I only have about 5K saved for a down payment. I could wait another 2 years or so but the time just seems right and I don't want it to pass me by.

Re: Possible FHA loan questions.

tooleman694 — Thu, 27 Dec 2012 18:50:16 GMT

That is even more of a reason to go conventional, the 3 percent down with conventional is cheaper than the 3.5 percent down with FHA.

Re: Possible FHA loan questions.

StartingOver10 — Fri, 28 Dec 2012 01:01:08 GMT

tooleman694 wrote:
That is even more of a reason to go conventional, the 3 percent down with conventional is cheaper than the 3.5 percent down with FHA.

Toolman - are you sure? I thought the 3% down payment applied strictly to fannie mae conventional loan for a fannie mae foreclosure. Otherwise the minimum is 5% down for a regular conventional loan.

Re: Possible FHA loan questions.

tooleman694 — Fri, 28 Dec 2012 14:38:01 GMT

Yup Fannie Mae, LTV is 97 percent.

It used to be called flex 97 but they got rid of it, now its part of the regular guidelines.

Re: Possible FHA loan questions.

tooleman694 — Fri, 28 Dec 2012 14:38:51 GMT

If you buy a fannie mae foreclosure, its also 3 percent.

Re: Possible FHA loan questions.

miltown81 — Fri, 28 Dec 2012 17:23:35 GMT

Wow. 3%? In all my time on the Forums, I have not seen that. Although I havn't spent much time on the mortgage threads. So the 3% down is only available to FM forclosures?

Re: Possible FHA loan questions.

tooleman694 — Fri, 28 Dec 2012 17:30:21 GMT

Its 3 percent down for their standard guidelines on a regular home purchase.

You need a 680 score, 3 percent down. yada yada yada yada.

I know a guy who just bought a home a couple months back and did it. He was way over the FHA loan limits so he had to go conventional since he didnt have a ton of cash on hand.