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Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,828,492 times
Reputation: 958
Depends on which state your in. Minimum borrower contribution will always be 3%, but depending on which state and loan amount the amount of that 3% that goes towards your down payment will vary.
[CENTER]Maximum Loan-to-Value Percentages[/CENTER]
[SIZE=3](Purchase Transactions Only on Proposed and Existing Construction)[/SIZE][/CENTER]
[SIZE=3] [/SIZE][/CENTER][/CENTER]
[SIZE=3]States with Average Closings Costs At or Below 2.1 Percent of Sales Price[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]·[/SIZE] [SIZE=3]98.75 percent: For properties with values/sales prices equal to or less than $50,000.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]·[/SIZE] [SIZE=3]97.65 percent: For properties with values/sales prices in excess of $50,000 up to $125,000[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]·[/SIZE] [SIZE=3]97.15 percent: For properties with values/sales prices in excess of $125,000.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]States with Average Closings Costs Above 2.1 Percent of Sales Price[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]·[/SIZE] [SIZE=3]98.75 percent: For properties with values/sales prices equal to or less than $50,000.[/SIZE]
[SIZE=3] [/SIZE]
[SIZE=3]·[/SIZE] [SIZE=3]97.75 percent: For properties with values/sales prices in excess of $50,000.[/SIZE]
As you can see there is not one situation where the down payment is 2.5%.
After 01/01/09 the down payment requirement will be 3.5%. This applies to new FHA case numbers assigned after that date. If you start the process before the end of the year, find a home and get an offer accepted, and have an FHA case number assigned it does not need to close before the 1st although some lenders may require it.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,828,492 times
Reputation: 958
Quote:
Originally Posted by heydade
I wonder why she is telling me 2.25% I am in Florida and all her GFE's reflect this. She is no dumby either.
If FL is a high cost closing state and the loan amount is over $50,000, then the down payment would be 2.25% but the minimum borrower contribution is still 3%.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,828,492 times
Reputation: 958
The upfront mortgage insurance is different from the monthly mortgage insurance premium. The UFMIP (or funding fee) will be disclosed under the funds needed to close section as opposed to the total estimated monthly payment section located towards the bottom of your GFE. Based on your purchase price, assuming 3% down, the UFMIP would be 4226.78. The monthly MIP sounds about right.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,828,492 times
Reputation: 958
Quote:
Originally Posted by Kathleen1971
True but you would be surprised how many loan officers are getting it wrong. That's why I asked if maybe that is what she was quoting.
I probably wouldn't be. The only other thing I can think of is the OP is paying their own closing costs, and that is what is making up the remainder of the minimum borrower contribution.
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