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Established Contributor
rmily
Posts: 670
Registered: ‎07-12-2008

MyCommunity vs FHA

Is FHA always better?  I don't see MyCommunity mentioned much and I'm wondering why. 

 

Also, I picked up a financing sheet from an open house and although the interest rate on the FHA loan is lower, the P&I payment is higher.  I imagine they left out some important details on this but..

 

For example - both with 3% down,loan amount= $87k

FHA interest rate = 6.75%, P&I = $771

MyCommunity - interest rate = 7.5%, P&I = $609

 

The PMI on the MyCommunity was about 5 bucks higher but that is sort of negated by the fact that P&I is lower by ~$160.

 

These are outdated, just for example.  The only quirks I remembered seeing with MyCommunity was the income limit and a homebuyer's class/counseling required.  Hm, for loan applications starting 1/1/09.  Does that mean if I apply for pre-approval now I'm exempt from the education? Heh..

Valued Contributor
BrianB_The_Loan_Professor
Posts: 1,381
Registered: ‎07-29-2008

Re: MyCommunity vs FHA

Those numbers are way off

There is no way the PMI is that different in fact FHA MI is less than the My community

 

The My community added some interest rate adjustments making it less than the best option so you wont hear about it much

as you have pointed out there is a big difference in rate.

 

Calculating  MI fir FHA is .55% per year

My Community .64%

 

not sure where you got the numbers but you may want to double check them for accuracy

 

on an 87k loan FHA MI would only be about $40 a month

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Brian B The Loan Professor
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