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Old 02-14-2013, 09:14 PM
 
382 posts, read 712,310 times
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For example, my sister is buying a house with 3.5% down. Since FHA only has a borrowing limit up to $410k, she is hoping she can do a second loan and put down 20%. Is this even possible?? I've never heard of that. Her problem is that she makes a ton of money but recently paid off all of her student loans so doesn't have a lot of down payment money. This way, she will be able to up her budget to a $475k house instead of a $425k house.
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Old 02-14-2013, 09:41 PM
 
Location: northern va
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fha allows more than $410,000

you can also look for a lender that offers a conventional program with less than 20% down if desired.
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Old 02-14-2013, 09:44 PM
 
382 posts, read 712,310 times
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In our area the limit for an FHA loan is 410k unfortunately. The reason she wants to piggyback is that she can afford 20% on a $50,000 loan but can only do the FHA minimum of 3.5% on the $410,000 loan. Basically, she has $25k to put as a down payment on a $475k house.
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Old 02-14-2013, 11:26 PM
 
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Gonna state the obvious here and say if her income is high and her loans are paid off, it should only take 6 months to save a full 10% down from where she's at, and qualify for conventional financing.
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Old 02-15-2013, 05:46 AM
 
Location: MID ATLANTIC
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There are programs w 5% down up to 625K for well qualified buyers. The guidelines are tight.

What state is she in?
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Old 02-15-2013, 05:24 PM
 
Location: Salem, OR
14,469 posts, read 34,559,495 times
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No you can't piggyback on an FHA loan. She needs to find a conventional loan product.
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Old 02-15-2013, 06:39 PM
 
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You could, but why go FHA? FHA mortgage insurance is about to change such that you are stuck with it for the ENTIRE life of the loan, regardless of equity.

Just do a conventional 80/10/10, with the seller paying closing costs and prepaids. The Conventional rate will be slightly higher than FHA, but you will not have $550 per month in Mortgage Insurance.
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Old 02-16-2013, 11:45 AM
 
3,576 posts, read 6,238,853 times
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Quote:
Originally Posted by Pfhtex View Post
You could, but why go FHA? FHA mortgage insurance is about to change such that you are stuck with it for the ENTIRE life of the loan, regardless of equity.

Just do a conventional 80/10/10, with the seller paying closing costs and prepaids. The Conventional rate will be slightly higher than FHA, but you will not have $550 per month in Mortgage Insurance.
Depends on the area. Many areas the closing costs are split between the seller and buyer. The seller is already paying the majority of the transaction cost to began with. Too much wishful thinking asking for the seller to pay for all the closing cost and prepay insurance/real estate taxes (you have got to be smoking crack).

Maybe with some REO (ex homepath) will pay for closing costs/prepaid. But for foreclosures are getting harder to find. But conventional sales unless the seller is desperate. They will just add the closing cost/prepaid into the final price of the house. Than you will be appraisal issues with this.
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Old 02-16-2013, 02:51 PM
 
Location: northern va
1,663 posts, read 2,313,235 times
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Quote:
Originally Posted by aneftp View Post
Depends on the area. Many areas the closing costs are split between the seller and buyer. The seller is already paying the majority of the transaction cost to began with. Too much wishful thinking asking for the seller to pay for all the closing cost and prepay insurance/real estate taxes (you have got to be smoking crack).

Maybe with some REO (ex homepath) will pay for closing costs/prepaid. But for foreclosures are getting harder to find. But conventional sales unless the seller is desperate. They will just add the closing cost/prepaid into the final price of the house. Than you will be appraisal issues with this.
in my area, most sellers are prepared and willing to absorb 2.5-3.5% towards the buyers closing costs/prepaids etc..

The majority of the times it is not paid is on a property with multiple offers where another buyer will pay their own CC to get their deal accepted
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Old 02-16-2013, 05:55 PM
 
Location: Columbia, SC
9,556 posts, read 18,861,296 times
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Quote:
Originally Posted by Pfhtex View Post
You could, but why go FHA? FHA mortgage insurance is about to change such that you are stuck with it for the ENTIRE life of the loan, regardless of equity.

Just do a conventional 80/10/10, with the seller paying closing costs and prepaids. The Conventional rate will be slightly higher than FHA, but you will not have $550 per month in Mortgage Insurance.
Except she has only 25k to put down on a 475k home and you don't see many 80/10/10's anymore.

And OP, you cannot piggy back the FHA/conventional. See if you can find a conventional with a 5% dp and compare to an FHA.
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