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Established Member
Posts: 27
Registered: ‎03-11-2017
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Screwed mortgage over $500!!

[ Edited ]

Sorry for the kinda clickbait subject. We technically got screwed but only for a short time.

 

My wife and I just got pre-approved for a MassHousing mortgage with 3% down and no PMI last week. Our area max salary  to qualify was $97,335. We came in at $96K in base salary. The very next morning I check my bank account and notice my pay is about $40 more. I go to work and find out lower management received surprise pay raises between $1-2 an hour. Are you freakin kidding me? This brought our annual base pay to $97,860

 

All we qualify for now is a 5% down conventional mortgage( We need to contribute $5-6K more to our down payment which will cut severely into our reserves so we have to save a few more months)

 

FHA: not really the best idea for low debt high credit score people

 

USDA: I would love this loan but the towns that qualify have houses that are 20% more and slim pickings. Houses that are $269K in my small city are $300-$310K in the suburbs.

Citi Simplicity $7800; Chase Freedom $3500; Capital One $2700; Sears Mastercard $3000; Lowes $4000; Paypal Credit $4600; Amazon Credit $2800

Exp: 797 Trans: 812 Equ: 802
New Contributor
Posts: 97
Registered: ‎05-30-2007
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Re: Screwed mortgage over $500!!

 

FHA: not really the best idea for low debt high credit score people

 

 

Maybe, maybe not....FHA rates are about a 1/2 point lower, you didn't say how high your FICO score is, but 5% down conventional MI rates are not that far off from FHA MI...I think that your payment could probably be about the same. Have you had your LO work it up to see?

 

Depending on how "Hot" your local market is the it may be better not to wait.

 

Thanks,

 

Senior Mortgage Loan Officer in the states of Arizona & California
Established Member
Posts: 27
Registered: ‎03-11-2017
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Re: Screwed mortgage over $500!!

My Fico was 782 and my wife was 802. From my understanding, FHA mortgage insurance is for life of the loan if putting 3.5% down.
Citi Simplicity $7800; Chase Freedom $3500; Capital One $2700; Sears Mastercard $3000; Lowes $4000; Paypal Credit $4600; Amazon Credit $2800

Exp: 797 Trans: 812 Equ: 802
New Contributor
Posts: 97
Registered: ‎05-30-2007
0 Kudos

Re: Screwed mortgage over $500!!

Yes it i does, but your not going to be in the loan for 30 years, so "The life of the loan"  part is irrelevant, you will re-finance out of it as soon as you have 20% equity in the property....and in a hot market, I've seen it happen in less then a years time....YMMV

 

Thanks,

Senior Mortgage Loan Officer in the states of Arizona & California

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