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Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: How much of a house should I buy.....?

Yes there is in Colorado through CHFA, our housing authority. If you have a 700 credit score and 3.5% down, you qualify for a loan program that requires no PMI. I signed up for their program that required PMI but 3% of my downpayment was rolled into a second mortgage so I only needed 0.5% down that was covered by my earnest money.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Member
rubu
Posts: 47
Registered: ‎01-05-2013

Re: How much of a house should I buy.....?

[ Edited ]

from my research and talking to others....I am not eligibale for FHA because of the value of the house and income level? They say if I put anything less than 20% I have to pay PMI or in FHAs case some extras which I do not want to do. Doing PMI on a FHA is a bad decission because you have to pay the PMI for a long time. Please note that I am in NY state.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: How much of a house should I buy.....?

What is the PMI requirement for conventional?

Yes for FHA, you have to pay PMI for about 10 years if you pay nothing additional to principal. But the amount of PMI goes down every year and it can now be written off on your taxes along with interest and property taxes.

Where I live, the max home price for FHA is a little above $400K. Our home price was $347,900 and I did an FHA loan.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: How much of a house should I buy.....?

I don't you are ineligible based on income, I think it is just the home price that doesn't qualify.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Member
rubu
Posts: 47
Registered: ‎01-05-2013

For conventional without 20% down...you have to do PMI. W...

For conventional without 20% down...you have to do PMI. When you own 22% of your home...PMI automatically removes. or when you get 20% you have to do written request to the bank.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: How much of a house should I buy.....?

Okay so the timeframe that PMI is required for conventional, is essentially the equivalent timeframe that it is required for FHA. So you are only losing out on the ability to write the bank at 20% LTV.

So if you put 22% down, the biggest differences for you between FHA and conventional are the financeable home price and the interest rate. Do you have a pretty high fico score...above 700?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: How much of a house should I buy.....?

With conventional you can do LPMI, and just pay an up front fee and your done with PMI for the life of the loan.

Valued Member
rubu
Posts: 47
Registered: ‎01-05-2013

Re: How much of a house should I buy.....?

My FICO is 816

Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: How much of a house should I buy.....?

If I were you id buy that house, go conventional with 5 percent down and do LPMI and keep the rest of the cash in the bank for your reserves.

Valued Member
rubu
Posts: 47
Registered: ‎01-05-2013

Re: How much of a house should I buy.....?

Whats LMPI? could you please clarify or provide a link? 


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