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My husband and I are beginning our house search. Our goal is to be in a new home by next fall. I have been looking into FHA loans and would like some feedback from ppl who have gone thru the process. Specifically, what bank did you use? Would you recommend one bank over another (Wells Fargo, Chase, etc)? How long was the process?
My husband and I are beginning our house search. Our goal is to be in a new home by next fall. I have been looking into FHA loans and would like some feedback from ppl who have gone thru the process. Specifically, what bank did you use? Would you recommend one bank over another (Wells Fargo, Chase, etc)? How long was the process?
Any information would be much appreciated.
TIA!!!!
Currently in contract on a home using FHA loan. We used a mortgage broker and the specific bank we are using is not one of the "big" banks. They gave us an extremely competitive rate that I am very, very happy with. The process from contract to commitment took less than 1 month. Right now we are awaiting the outcome of the appraisal. Once appraisal comes in, we'll have to send in a couple of more documents (latest bank statements, etc) and we should close before the end of September.
Currently in contract on a home using FHA loan. We used a mortgage broker and the specific bank we are using is not one of the "big" banks. They gave us an extremely competitive rate that I am very, very happy with. The process from contract to commitment took less than 1 month. Right now we are awaiting the outcome of the appraisal. Once appraisal comes in, we'll have to send in a couple of more documents (latest bank statements, etc) and we should close before the end of September.
For an FHA loan, is it true that you can not put down a large down payment ( say 15-20% )?
I dont get what the advantage of an FHA loan is......
Just curious, did they up the minimum down from 3.5% and the interest premiums as they said they were going to ?
My minimum down remains at 3.5%. The MIP rate is the latest rate that they are using, which is 1.25% for 3.5% down, or 1.2% for 5% down. The FHA funding fee was also calculated using the latest rate of 1.75% of the "base" mortgage (loan amount less down payment).
For an FHA loan, is it true that you can not put down a large down payment ( say 15-20% )?
I dont get what the advantage of an FHA loan is......
You can put down as much as you want. The advantage of the FHA loan is that you can put down as little as 3.5%. And the mortgage is assumable. Meaning that if years down the road, you want to transfer the mortgage to someone else, instead of selling the home, as long as they qualify, someone else can assume the mortgage.
For an FHA loan, is it true that you can not put down a large down payment ( say 15-20% )?
I dont get what the advantage of an FHA loan is......
You made my day !!
Just FYI, If you can put 20%, don't do FHA. Your monthly payments will be less and the interest paid on the house will be less. Although these days (housing bust) the PMI cannot be eliminated soon, but usually you can get rid of that too on a regular loan. People do FHA mostly because they don't have the 20% down.
So to be able to own a house without having 100k in the bank can be seen as an advantage of FHA, but it does not make financial sense if you can get a regular loan.
Yes, Vanilla made a good point about being assumable, but I am not sure how many really exercise that option.
Just FYI, If you can put 20%, don't do FHA. Your monthly payments will be less and the interest paid on the house will be less. Although these days (housing bust) the PMI cannot be eliminated soon, but usually you can get rid of that too on a regular loan. People do FHA mostly because they don't have the 20% down.
So to be able to own a house without having 100k in the bank can be seen as an advantage of FHA, but it does not make financial sense if you can get a regular loan.
Yes, Vanilla made a good point about being assumable, but I am not sure how many really exercise that option.
ok thanks. I just googled FHA and read the pros and cons. We are looking for a home and we have 50-60K to put down, so with all the fees and PMI, we would in fact do better with a regular bank loan. Thanks for the tips everybody.
Some people today go FHA because it is easier to qualify for then conventional mortgages. They are much more lenient with regard to credit scores.
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