topic FHA down payment % ? in Mortgage Loans

FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 03:52:19 GMT

I have applications into two places for $290,000 sales price. Both show a loan amount of $284,747.

I don't understand where the loan amount came from. The difference is only 1.8% of the sales price.

I thought FHA required 3.5% down??

Thanks for any help.

Re: FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 04:26:06 GMT

It looks like the loan amount without MIP is $279,850, which is 3.5% of the$290,000 sales price.

But then, they roll the MIP ($4,897) into the loan amount?? That's how they get to $284,747.

I don't understand that. Almost half of the required down payment is rolled into the loan?

Re: FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 04:39:03 GMT

take you total amount of your loan

Subtract the down payment

Add in the amount of mortgage insurance rolled into the loan

That should basicly be your loan amount.

Re: FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 04:42:17 GMT

Thanks for the response. I guess the part I don't understand is that I didn't know they would roll part of the 3.5% down into the loan amount. That makes my down payment amount about 1.8%.

Is that right?

Re: FHA down payment % ?

Lel — Wed, 27 Jan 2010 04:50:23 GMT

No, you still have to come up with the 3.5%.

Purchase price of $290,000 requires a down payment of $10,150. This bring the principal amount to $279,850. Then you multiply the loan balance by 1.75% (soon to be 2.25%) to calculate the amount of the upfront MIP, which then gets added to the prinicipal amount. That gives you the $284,747 figure.

Re: FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 04:56:04 GMT

Thanks Lel. That makes sense, but the "Total Required for Settlement" amounts are both around $16,000. That amount includes fees added on top of the $290K, which take the Total to around $300K, and the difference between 290K sales price and the $284K loan amount.

Am I missing fees somewhere? My biggest concern is that I think I'm ready and I need to save more money.

Does it seem like the 16K is all I'll need?

Re: FHA down payment % ?

Lel — Wed, 27 Jan 2010 05:23:27 GMT

$10,000 of that is your down payment. Are you paying any points? A point would add about $2800 to your closing costs. If you have a breakdown of your estimated closing costs, you could post it here and folks can see if it all seems reasonable.

Re: FHA down payment % ?

Anonymous — Wed, 27 Jan 2010 05:47:24 GMT

Thanks Lel. :-) No points. Here is what one of my sheets shows:

Sales Price: $290,000.00

Loan (without MIP/Funding Fee): $279,850.00

Loan (with MIP/Funding Fee): $284,747.00

Interest Rate: 5.000%

Loan Term: 360

Monthly Payment Estimate

---------------------------------------------

Principal and Interest: $1,528.59

Taxes: $550.00

Insurance: 96.67

PMI/FHA Mortgage Insurance: $127.41

TOTAL: $2,302.67

Estimated Loan Costs - Buyer

---------------------------------------------

Tax Related Service: $84.00

Application Fee: $465.00

Processing Fee: $300.00

Underwriting Fee: $295.00

Courier Fee: $65.00

Flood Certification: $14.00

Settlement Or Closing: $300.00

Title Insurance Fee: $175.00

Title Policy: $200.00

Title Search Fees: $5.00

Attorney Doc Review: $150.00

E-doc Closing Fee: $50.00

Recording/Filing Fee: $125.00

Pest Inspection Fee: $75.00

TOTAL: $2,303.00

Estimated Prepaid and Escrow Costs - Buyer

---------------------------------------------

Perdiem Interest 15 Days @ $39.01 = $585.15

Hazard Insurance Premium(1yr): $1,160.04

FHA/MIP/VA Funding Fee: $4897.38

TOTAL: $6,642.57

Hazard Insurance 3 months @ $96.67 = $290.01

Real Estate Taxes: $1,650.00

TOTAL: $1,940.01

Estimated Summary of Purchase

---------------------------------------------

Purchase Price: $290,000.00

Prepaids: $6,642.57

Escrows: $1,940.01

Loan Costs: $2,303.00

TOTAL: $300,885.58

Minus

Other Credit: $84.00

Mortgage Amount: $284,747.00

Estimated Cash Required For Settlement: $16,054.58

Re: FHA down payment % ?

Anonymous — Thu, 28 Jan 2010 00:13:40 GMT

Can anyone tell how much I'll actually need to have on hand? I can't tell if the down payment is in the Settlement Total or not.

Thanks!

Re: FHA down payment % ?

Lel — Thu, 28 Jan 2010 00:22:19 GMT

Down payment $10,500 + loan costs $2303 + prepaid interest/homeowners (hazard) insurance $1745.19 + escrows (real estate taxes/3 months insurance) = $16,054.20. Very close to what your documents state. This does include your down payment.

Re: FHA down payment % ?

Anonymous — Thu, 28 Jan 2010 00:59:55 GMT

Thanks Lel!

You know, I have another worksheet, from a credit union, and a lot of the numbers look the same. But, they have two TOTALS at the end. The first one says Total Estimated Settlement Charges and is around 16K, just like the one I posted. But, underneath that, they list the loan amount, etc. and under the heading, Estimated Cash Required At Closing, the amount is 21K.

Very strange. That is why I wondered if I was missing something.

Re: FHA down payment % ?

Lel — Thu, 28 Jan 2010 04:06:28 GMT

Weezy wrote:

Thanks Lel!

You know, I have another worksheet, from a credit union, and a lot of the numbers look the same. But, they have two TOTALS at the end. The first one says Total Estimated Settlement Charges and is around 16K, just like the one I posted. But, underneath that, they list the loan amount, etc. and under the heading, Estimated Cash Required At Closing, the amount is 21K.

Very strange. That is why I wondered if I was missing something.

Maybe they didn't roll the MIP into the loan. That would account for the $5000 difference.