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But I think we can all agree, FHA is a good program!!! Whether or not you buy 1 or 100 houses.
Good compared to what? It has a certain specific set of homebuyers it is good for (those with poor/no credit and/or low down payments, but willing to pay PMI for the life of the loan).
Good compared to what? It has a certain specific set of homebuyers it is good for (those with poor/no credit and/or low down payments, but willing to pay PMI for the life of the loan).
Well, no, actually, the mortgage company owns the house, but we won't mention that.
But they can't throw you out or ask you to leave if you keep paying. A landlord can increase your rent or ask you to leave when your lease is up. Plus they own the house, but if it increases in value the equity in the home belongs to you and not the bank. So if your home goes up in value $50K or $100K in a few years you can sell take the earnings and put a down payment on another house or buy in a lower cost area or smaller home. Plus they don't own the home, they own the loan for which the house is collateral. If they owned it you would have to ask permission to do modifications to it.
I wasn't griping or complaining I was just making an observation. Like I said it's figures into my mortgage payment which I can afford and the total payment including mortgage insurance is less than the current going rage, so refinancing at current rates with costs involved would cost me more than to keep my current FHA loan.
FHA must be making money hand over fist if they are getting about 1/4 of the current mortgage rate for mortgage insurance.
And if the housing market collapses again, which it shouldn't since unqualified loans are not being given out, I won't care. If my home is only worth half of what I paid for it, I will still have a roof over my head for less than what rents will be, because I did not see rents fall after the last crisis. Plus if housing falls it will only go back up eventually. Plus I can always rent out a spare room which till take care of my mortgage payment.
Re: the bolded
research the default rates on FHA loans vs. other mortgages and then see if you still agree with your own comment.
But they can't throw you out or ask you to leave if you keep paying.
Sure. The city can use eminent domain or jack up the property taxes. Or you might need to relocate for other reasons (job, family, etc.)
There is no such thing as a 100% guaranteed domicile. Life is full of risks.
Quote:
Originally Posted by LifeIsGood01
A landlord can increase your rent or ask you to leave when your lease is up. Plus they own the house, but if it increases in value the equity in the home belongs to you and not the bank.
Sure, and if it goes down in value, you have to eat the loss.
Quote:
Originally Posted by LifeIsGood01
So if your home goes up in value $50K or $100K in a few years you can sell take the earnings and put a down payment on another house or buy in a lower cost area or smaller home. Plus they don't own the home, they own the loan for which the house is collateral. If they owned it you would have to ask permission to do modifications to it.
True, but in some neighborhoods you have to ask the city or HOA for permission.
In the third most populated state Florida there are only 49 HUD homes (FHA foreclosures) available currently out of the millions of homes in Florida. They are also not cheap, they seem to be priced at market value so HUD gets the money from the home sale while they collected mortgage insurance from the previous owner. How is that not making money hand over fist? Also those are starting prices so bids may be higher.
Last edited by LifeIsGood01; 05-03-2018 at 02:24 PM..
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