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New Visitor
Lusion
Posts: 6
Registered: ‎08-10-2011

Re: Evaluating Conventional vs. FHA (VA & USDA)

First post and probably don't have much to add. I recently closed on a property and used the Gauranteed product and it was painless for the most part. USDA was the hold up once it was submitted for approval, I ended up having to call the director for my state for them to finally sign off on it. 

 

One thing people need to consider is that by the end of this year USDA will be adjusting their eligible areas as the census data is processed. So if you're looking to purchase in an area that you know is no longer rural it would be in your best interest to start the buying process now before that area is no longer eligible.

Established Contributor
Lasardo
Posts: 717
Registered: ‎04-26-2012

Re: Evaluating Conventional vs. FHA (VA & USDA)

If my credit score is 704 EX, 703 EQ and 631 TU how is that figured?
Also, I am disabled on SSDI, I was told by the LO that because I do not pay taxes they would figure my income higher.
My income is $1765 a month.
I do not have savings but was told on an FHA loan the government would give me 5% down..
Is this true?
Also, I have no debt, except for a $255 debt that is due to fall off in December/2012
In 1 month..
Should I wait to process my loan then considering my score will increase dramatically.
Additionally, I am on 2 cards as an AU, my credit goes only back 1 year for myself, alone, except for a car loan from 2008 which that will be paid off in February, how will that affect me?
I am looking at a $105k loan. It is about $400 more to rent in my area (Arizona) than it is to buy.
Any help on these questions is appreciated.
CS 728- 01/13 from 554-12/11
Goal: 800
New Visitor
beastykato
Posts: 1
Registered: ‎12-27-2012

Re: Evaluating Conventional vs. FHA (VA & USDA)

[ Edited ]

Hi, I'm a first time home buyer and ran across this thread in a google search.  I was just hoping to post the USDA loan specifics that I was given to see if it's a good deal and all the costs look reasonable.  I really have no idea what I'm doing =P.  I understand the interest rates and such that go along with mortgages, but really have no idea at all about what to expect as far as fees and if fees and rates are even negotiable under a USDA loan to begin with. 

 

This is what I have been quoted thus far on a home where the asking price is $145,000 (no negotiating of the price has been done yet.)

 

Sale Price: $145,000

 

Closing Costs: $5040

 -Appraisal/Reinspection: 400

 -Credit Report: 75

 -Funding Fee: 205

 -Underwriting Fee: 305

 -Flood Certification: 25

 -Settlement Fee: 200

 -Document Prep: 200

 -Notary Fee: 25

 -Title Insurance: 1140

 -Title Endorsement: 175

 -Recording Fee: 250

 -Pest Inspection: 65

 -Transfer Tax Stamps: 1450

 -Home Inspection: 350

 - *Optional: Closing Protection Letter: 75

 

**** The above fees are slighlty off by ~70 dollars when I added them up.  I'm thinking the mortgage rep forgot to list something. 

 

Prepaid Items: $5984

 -12 month tax escrow: 1800

 -30 Days Prepaid Interest: 426

 -1st Year Homeowner's policy: 690

 -2 months insurance escrow: 180

 -USDA Upfront "MIP": 2959

 -2 months "MIP" Escrow: 99

*** again these costs don't add up to the total in bold.  I must be missing something because I doubt this guy is that bad at math??

 

Payment Breakdown (Loan Amount $147,959 @ 3.5% Interest and $1565 Required at closing)

 

 -P&I: 664.40

 -Taxes: 150

 -Insurance: 50

 -"MIP": 49.32

 

 -Total:  913.72

 

 

 

New Contributor
Legal_Girl
Posts: 73
Registered: ‎02-22-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

I am the widow of a veteran who died from a service connected disease. We have a son who is a minor (16). It is my understanding that since my husband died crom a service connected disease that I would be exempt from the VA funding fee. Buying a house before end of year. Trying to get a bigger down payment. . Since I am exemlt from funding fee, won't the VA be the best way to go????
Current EQ FICO 685 as of 4-11-14 //EX Fico 669 as of 1-2-14//TU FICO 670 as of 4-15-14 Cap One $1k // Credit One $1,675 // First National $2k // Kohl's $1500 // Barclay Rew MC $4,000 // Sallie Mae MC $3,800 // NFCU Visa Signature Cash Rewards $10k
New Contributor
Legal_Girl
Posts: 73
Registered: ‎02-22-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

*****sorry for the typos. .. just got a new phone last night..
Current EQ FICO 685 as of 4-11-14 //EX Fico 669 as of 1-2-14//TU FICO 670 as of 4-15-14 Cap One $1k // Credit One $1,675 // First National $2k // Kohl's $1500 // Barclay Rew MC $4,000 // Sallie Mae MC $3,800 // NFCU Visa Signature Cash Rewards $10k
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Evaluating Conventional vs. FHA (VA & USDA)

VA if qualified is almost always the best way to go.

Good Luck
May all your dreams and wishes become a reality!
New Visitor
Gators1up
Posts: 5
Registered: ‎10-09-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

This is a great tip. Thanks for sharing with all of us.

New Visitor
camz383s
Posts: 2
Registered: ‎10-25-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

Hi all,

 

I'm curious which route would be best for me to go?  Conventional vs FHA

 

Base salary $90k, quarterly bonuses of $8-9k

Middle score of around 640 (bank requires a middle of 620 for conventional)

Purchase price $230k

Down payment between 5-10%

One 3 year old collection of $2500

 

What would my best route be to go?  Let me know if you need more info...

Frequent Contributor
Peter1142
Posts: 336
Registered: ‎08-17-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

[ Edited ]
With a middle score of 640, it is unlikely to be conventional. The only way to really know for sure is to ask a LO
New Visitor
camz383s
Posts: 2
Registered: ‎10-25-2013

Re: Evaluating Conventional vs. FHA (VA & USDA)

I've been preapproved for a conventional loan, but I'm not sure if FHA is a better route for me.


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