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Old 03-21-2009, 11:44 PM
341 posts, read 1,478,025 times
Reputation: 255


Hey, lots of good info here and hope I can get some basic advice from the mortgage experts here.

Here are the stats:

First home - Long Island NY.

Wife and I both have credit scores above 700. Just pulled mine from Equifax, which puts my "Plus Score" at 768. My wife is around 710. No late payments or any derogs on either.

Gross Income combined is 190K per year. Stable jobs - had mine for 13 years, she's had hers for 4.

We have 2,500.00 a month in debt, without housing. We rent now in Manhattan and pay 3,100 per month.

We are looking at a house that is 479K.

Here's the thing, I'd love to put down 5 percent, or even 3.5 percent if we went FHA... we don't have 20 percent to put down... or even 10 given what closing costs will likely run us because I don't want to exhaust our savings...

Given the fact that we need a smaller downpayment, is FHA the way to go?

thanks for the help.
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Old 03-22-2009, 10:20 AM
Location: SE Michigan
1,214 posts, read 4,745,977 times
Reputation: 683
I have heard of 80/20 loans but not sure if they do that anymore.

I went FHA because it was very easy, not having shop around for 2 different mortgage companies. FHA do not give you "credit" for good credit... your scores only have to be above 600 something.

I think 80/20 is cheaper closing because FHA make you pay PMI upfront plus a percentage of the loan (I think 1% as a fee upfront). 80/20 you can sometimes swing for no PMI.

I am sure the mortgage experts here on CD will give better answers.
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Old 03-22-2009, 10:49 AM
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,584,048 times
Reputation: 958
80/20 loans are gone. The upfront mortgage insurance premium on an FHA loan can be financed and it does not affect your loan to value. You can still get a 5% down conventional, depending on lender and location (not sure if you could in NY, you will need to talk to someone with local knowledge). The conventional with 5% down will likely be less expensive on a monthly basis, if you can find it.
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