FHA loans to become more expensive and/or harder to get?

[urbanrealtor]

Hmmm….

They are currently the lowest down product available.
Except for VA loans.
I am not sure they can be rightly called the new sub prime.

A $300k buyer with 10k in savings and minimum 620 FICO is not perfect but not a terrible credit risk.

FHA appraisals tend to be pretty rigorous too.

[Anonymous]

I’m not the brightest bulb but I have two questions. I live in Seattle and have a credit score of 720. Based on the housing prices in Seattle, I’m relegated to the condo/townhouse market. I could either get a conventional loan an pony up 20% which would be at least 40k. Or, I could get an FHA loan, hold on to my cash, and in essence get into a townhouse with a very low down payment if you factor in the 8K tax credit. I would lean more towards a true townhome because you can cancel the MIP on a townhouse with a 78% LTV (I believe it’s permanent on a condo). Am I way off base here? I calculate that I would have to be in the house 12 years to make putting up 20% worth it. I don’t think it is, especially since cash is king now. I think the FHA loan for me is a better option. I know this is similar to the other post, but I really don’t see the benefit of going conventional when you are in the under 300k market and don’t plan on the purchase being your final home.

Any analysis as to why I am way off-base or on track would be greatly appreciated.

[Anonymous]

I’m not the brightest bulb but I have two questions. I live in Seattle and have a credit score of 720. Based on the housing prices in Seattle, I’m relegated to the condo/townhouse market. I could either get a conventional loan an pony up 20% which would be at least 40k. Or, I could get an FHA loan, hold on to my cash, and in essence get into a townhouse with a very low down payment if you factor in the 8K tax credit. I would lean more towards a true townhome because you can cancel the MIP on a townhouse with a 78% LTV (I believe it’s permanent on a condo). Am I way off base here? I calculate that I would have to be in the house 12 years to make putting up 20% worth it. I don’t think it is, especially since cash is king now. I think the FHA loan for me is a better option. I know this is similar to the other post, but I really don’t see the benefit of going conventional when you are in the under 300k market and don’t plan on the purchase being your final home.

Any analysis as to why I am way off-base or on track would be greatly appreciated.

[Anonymous]

I’m not the brightest bulb but I have two questions. I live in Seattle and have a credit score of 720. Based on the housing prices in Seattle, I’m relegated to the condo/townhouse market. I could either get a conventional loan an pony up 20% which would be at least 40k. Or, I could get an FHA loan, hold on to my cash, and in essence get into a townhouse with a very low down payment if you factor in the 8K tax credit. I would lean more towards a true townhome because you can cancel the MIP on a townhouse with a 78% LTV (I believe it’s permanent on a condo). Am I way off base here? I calculate that I would have to be in the house 12 years to make putting up 20% worth it. I don’t think it is, especially since cash is king now. I think the FHA loan for me is a better option. I know this is similar to the other post, but I really don’t see the benefit of going conventional when you are in the under 300k market and don’t plan on the purchase being your final home.

Any analysis as to why I am way off-base or on track would be greatly appreciated.

[Anonymous]

I’m not the brightest bulb but I have two questions. I live in Seattle and have a credit score of 720. Based on the housing prices in Seattle, I’m relegated to the condo/townhouse market. I could either get a conventional loan an pony up 20% which would be at least 40k. Or, I could get an FHA loan, hold on to my cash, and in essence get into a townhouse with a very low down payment if you factor in the 8K tax credit. I would lean more towards a true townhome because you can cancel the MIP on a townhouse with a 78% LTV (I believe it’s permanent on a condo). Am I way off base here? I calculate that I would have to be in the house 12 years to make putting up 20% worth it. I don’t think it is, especially since cash is king now. I think the FHA loan for me is a better option. I know this is similar to the other post, but I really don’t see the benefit of going conventional when you are in the under 300k market and don’t plan on the purchase being your final home.

Any analysis as to why I am way off-base or on track would be greatly appreciated.

[Anonymous]

I’m not the brightest bulb but I have two questions. I live in Seattle and have a credit score of 720. Based on the housing prices in Seattle, I’m relegated to the condo/townhouse market. I could either get a conventional loan an pony up 20% which would be at least 40k. Or, I could get an FHA loan, hold on to my cash, and in essence get into a townhouse with a very low down payment if you factor in the 8K tax credit. I would lean more towards a true townhome because you can cancel the MIP on a townhouse with a 78% LTV (I believe it’s permanent on a condo). Am I way off base here? I calculate that I would have to be in the house 12 years to make putting up 20% worth it. I don’t think it is, especially since cash is king now. I think the FHA loan for me is a better option. I know this is similar to the other post, but I really don’t see the benefit of going conventional when you are in the under 300k market and don’t plan on the purchase being your final home.

Any analysis as to why I am way off-base or on track would be greatly appreciated.

[Author]

Posts