FHA Question

[Anonymous]

Let's say I wanted to buy a house that is 310k but the FHA limit in my area is 271k. I have 20k to put down but that means there is still a difference of 19k. Will lenders or do lenders still go ahead with the financing and just assume the risk on the 19k or is it a hardline anything above the FHA limit you have to come up with out of pocket?

Thanks!

[Anonymous]

There won't be wiggle room in that area. It is what it is. Anything above you bring cash.

[DallasLoanGuy]

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@Anonymous wrote:

There won't be wiggle room in that area. It is what it is. Anything above you bring cash.

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yep

[Anonymous]

Okay, follow up question.

It is my understanding that the FHA requires 3.5% down. Now is that % based on the 271k or the entire 312k?

I am trying to figure out what I would need to bring to the table for a down payment. Now 312-271 = 41k which would be roughly 13% down. Would that satisfy the FHA requirement or would I need that 41k and then 3.5% of 271k so a total of roughly 50.5k?

Thanks!

[Anonymous]

You need 3% of the sale price.

But like everyone said the max sale price is set in stone. I believe if you put down 20% you won't have to pay PMI. If I'm wrong someone correct me.

[StartingOver10]

3.5% min for FHA

5% if you want to reduce your monthly MI payment slightly.

[203bravo]

Dallas may answer this better - but it is my understanding that you neecd the 3.5% of the limit of 271k which would be 9485. Then you would need the remaining 39000 in cash to gap the difference.  So you would need 48,485$ as down payment - then add closing costs.

[Anonymous]

203bravo that is exactly what I am trying to figure out.

If it's true that really sucks....

[boomhower]

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@203bravo wrote:

Dallas may answer this better - but it is my understanding that you neecd the 3.5% of the limit of 271k which would be 9485. Then you would need the remaining 39000 in cash to gap the difference.  So you would need 48,485$ as down payment - then add closing costs.

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That's going to be it.  Your just going to have to lower you price range or wait and save more cash.

[Student_Loans_Kill]

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@203bravo wrote:

Dallas may answer this better - but it is my understanding that you neecd the 3.5% of the limit of 271k which would be 9485. Then you would need the remaining 39000 in cash to gap the difference.  So you would need 48,485$ as down payment - then add closing costs.

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That math didn't make sense, and total price would now be $319,000. I was told max loan value is $271,000 thus everything else is cash with LTV