Quote:
Originally Posted by jrsydevil82
I am a first time homebuyer as well, getting close to closing on a house & I STILL feel like I can't understand all of this lol.
I have $20k saved. My friends mom sells mortgages, so I went through her for pre-approval. I also got one from my realtor's acquaintance to compair rates. Since I have less than 20% down my realtor strongly advised I go with the FHA (& yes I have an 800 credit score). I find this has been the best option (even though you have to pay for mortgage insurance w/ the FHA) because I only have to put $7500 down, plus the closing costs, & I can still have $ to put towards a new roof (it's a short sale so it's sold as is-I'm getting $$ from my parents to put towards everything as well).
My friend's girlfriend is going through all of this the same time as me. She is buying a house (not a short sale) for around the same selling price with less than 20% down, and she went w/ a conventional mortgage. Her boyfriend told us she got screwed doing it this way, because it's not really lowering her monthly payments yet she had to put more down at closing (don't ask me for more details w/ how that worked out, because I don't understand LOL 
Good luck!
|
You might want to rethink the FHA loan decision. Recent changes to the FHA PMI program will require that PMI be paid for the life of the loan, even after you have paid enough to have 20%, or 30%, or even 50% equity.
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.
