Help picking which FHA loan program to go with please.

[Anonymous]

I recentely found out we qualify for an FHA loan. We don't have a downpayment, so we can either go with the $100 down FHA loan with $5,000 renovation. Or we could go with an FHA loan with a grant of $5,000 for the downpayment that we'd have to pay with monthly mortgage payments. Is one option better than the other? I'm having trouble figuring out exactly which way to go. 

[Anonymous]

Where are you located? There are a lot of downpayment assistance programs out there, but they vary by location.

Have you met with a lender? The LO should be able to break down your options and run the numbers for you.

[Anonymous]

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@Anonymous wrote:

I recentely found out we qualify for an FHA loan. We don't have a downpayment, so we can either go with the $100 down FHA loan with $5,000 renovation. Or we could go with an FHA loan with a grant of $5,000 for the downpayment that we'd have to pay with monthly mortgage payments. Is one option better than the other? I'm having trouble figuring out exactly which way to go. 

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How much would you have to pay monthly with the second option and for how long?

[Anonymous]

Well, the problem is..I'm talking to two different lenders. One lender I am pre- approved for the $100 down and $5,000 repair costs. With the other lender I'm approved for the $5,000 downpayment loan. They didn't go into detail about monthly costs..but I believe with the second option would tag on about $40 a month. I could also get a USDA loan. I'm very confused on what to go with..and is there a difference between FDA and HUD homes. The $100 down program is for HUD only homes..is that the same as all FDA approved homes?

Also, I'm in Illinois.

[StartingOver10]

Have each of the lenders prepare a Closing Cost Worksheet (or whatever they call it) for you. it is an itemized list of the cost of the loan so you know exactly what it will cost you and it will detail your monthly payments. This is the only way to compare.

Here is a link for HUD homes  http://www.hudhomestore.com/Home/Index.aspx

An FHA mortgage can be used on any FHA approved property. Generally single family homes and townhomes are fine for FHA mortgages. Condos have to have to be on the approved list. You can check the list for your area right on HUD.gov if you are considering a condo. The list changes all the time.  https://entp.hud.gov/idapp/html/condlook.cfm

[StrawberryIce]

Is there an income requirement for the downpayment loan?

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@Anonymous wrote:

Well, the problem is..I'm talking to two different lenders. One lender I am pre- approved for the $100 down and $5,000 repair costs. With the other lender I'm approved for the $5,000 downpayment loan. They didn't go into detail about monthly costs..but I believe with the second option would tag on about $40 a month. I could also get a USDA loan. I'm very confused on what to go with..and is there a difference between FDA and HUD homes. The $100 down program is for HUD only homes..is that the same as all FDA approved homes?

Also, I'm in Illinois.

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[Anonymous]

If time is not an issue, USDA will be cheaper than both other options almost certainly. Im closing a week from monday on a USDA direct loan in illinois.

[Anonymous]

Thanks so much! I actually decided to go with the USDA loan and see what's available. I got a pre-qualification letter today but my realtor said it's better to be pre-approved by a local lender..so that sucks I have to try and see if I can get pre-approved by someone local