My problem with FHA, is the loan limit of $271,000 when my budget is between $417,000 - $360,000. How will how would down payment affect my ability to get a conventional conforming and nonconforming. I'm looking at 5-15% down payment. Can I still use FHA if I do max loan of $271,000 with %20 on top of that?
Starting Score: 656
DTI is not a problem as my student loans won't burden until 2013 from 2012 W2, no other debt, large income Cash down payment from savings no additional borrowing
@StartingOver10 wrote:
@Student_Loans_Kill wrote:
My problem with FHA, is the loan limit of $271,000 when my budget is between $417,000 - $360,000. How will how would down payment affect my ability to get a conventional conforming and nonconforming. I'm looking at 5-15% down payment. Can I still use FHA if I do max loan of $271,000 with %20 on top of that?If the 20% that you are putting on top of the FHA loan is cash down payment, then yes, you can still use an FHA loan.
If you plan to borrow the extra 20%, then no you can't add another loan on top of a max'ed out FHA loan.
There are many reasons to use FHA financing rather than conventional financing. The size of the down payment is just one reason. Other reasons include DTI's and credit scores. Also, FHA will allow you to get a gift for the down payment up to 100% of the required down payment and most other types of financing won't allow it.