Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just as an FYI - an otherwise no longer available benefit is that FHA mortgages are assumable, as long as the future buyer qualifies.
So if someone buys a house now with, say a 4.5% interest rate FHA mortgage and sells in 5-10 years, when the principal is still pretty substantial, offering an assumable mortgage to potential buyers would give the sellers an advantage; nobody expects interest rates to remain where they are now, especially 5-10 years down the road.
If buyers have the choice between a house where they can take over a 4.5% interest rate loan and a house where they'll be paying 6-7% (who knows?), the lower interest rate could make the decision easier - do you agree?
Just as an FYI - an otherwise no longer available benefit is that FHA mortgages are assumable, as long as the future buyer qualifies.
So if someone buys a house now with, say a 4.5% interest rate FHA mortgage and sells in 5-10 years, when the principal is still pretty substantial, offering an assumable mortgage to potential buyers would give the sellers an advantage; nobody expects interest rates to remain where they are now, especially 5-10 years down the road.
If buyers have the choice between a house where they can take over a 4.5% interest rate loan and a house where they'll be paying 6-7% (who knows?), the lower interest rate could make the decision easier - do you agree?
That's a benefit I wasn't privy to, BUT, it's an aspect that could somewhat validate the OP's concern...I bought with the intent to stay for awhile, not looking for an easier flip in the near future. I hoped for a stable neighborhood. Areas like Levittown, where every third house has a sign in front, are a real turn off to me.
That said, if for some unforeseen reason I decide to sell, it's a good thing to know and I will make sure to educate myself, not like that CCR or whatever it was...
I'm planning on buying a new home. In researching a particular neighborhood in Merrick, I noticed that many of the homes that closed (in the past 2 years) in that specific area were with FHA mortgages. Now, I'm not familiar with FHA mortgages, but upon looking it up, it appears that they are intended for individuals who have credit problems and might not qualify for traditional mortgages. What, if anything, does this say about the neighborhood I'm looking at? If my goal is to purchase a home in an upscale are, should I look elsewhere? Or is this (large # of FHA mortgages) a trend occurring in most neighborhoods of Long Island these days?
IMHO, if you really want to analyze this further can you look at the past 10 years and find out more detail information ?
Find out how many have taken conventional loans with 0% down or 105% financing (and you thought 3.5% for FHA was bad ? )
Now, sit down and map the houses on the streets in the increasing order of the % downpayments made... once you are done.... voila.... you should be able to see clearly which house to buy according to your initial thought !!
Fha only required a 3% down payment with a 1.25% up front mortgage insurance premium, it is now a 3.5% down payment witha 1% upfront however the monthy insurance premium has risen based on the LTV. Closing costs can not exceed 5% of the loan.
It is a good way to go, you must have a credit score of 640+ It is a full document program, go for it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
