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12-26-2012 10:21 AM
Hey folks. Can someone give me some feedback on what most people look at in terms of APR, Interest, PMI, etc. on an FHA loan for the following situation? I am seriously considering purchasing a home this summer but want to see what others think. I don't have a "set" range for a home but would think that I want to keep it under $135K. I live in Waukesha, WI.
Current FICO score: 723, Income: 55K base +6k avg bonus, CC debt: 0, Auto Loan: 12,500. I have little money to put down as most of my discretionary money goes to retirement funds (401k, IRA & VUL). Any thoughts or insights on what costs/rates I'd be looking at? Any help is appreciated! Thanks!
12-26-2012 11:20 AM
Any reason why you want to go FHA? you are a perfect fit for conventional.
With FHA you are probably lookn at a low 3.25 rate or so. I think PMI would be like 130ish a month.
You go conventional, you could get the PMI gone.
12-27-2012 10:16 AM
I'm honestly tired of renting and getting that "itch" to own a home. I was thinking of FHA because I only have about 5K saved for a down payment. I could wait another 2 years or so but the time just seems right and I don't want it to pass me by.
12-27-2012 05:01 PM
That is even more of a reason to go conventional, the 3 percent down with conventional is cheaper than the 3.5 percent down with FHA.
Toolman - are you sure? I thought the 3% down payment applied strictly to fannie mae conventional loan for a fannie mae foreclosure. Otherwise the minimum is 5% down for a regular conventional loan.
12-28-2012 09:23 AM
Wow. 3%? In all my time on the Forums, I have not seen that. Although I havn't spent much time on the mortgage threads. So the 3% down is only available to FM forclosures?
12-28-2012 09:30 AM
Its 3 percent down for their standard guidelines on a regular home purchase.
You need a 680 score, 3 percent down. yada yada yada yada.
I know a guy who just bought a home a couple months back and did it. He was way over the FHA loan limits so he had to go conventional since he didnt have a ton of cash on hand.