FHA loans; why not?

[scaredyclassic]

kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.

[smshorttimer]

[quote=scaredycat]kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.[/quote]

Learn it, live it, my brother.

[smshorttimer]

[quote=scaredycat]kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.[/quote]

Learn it, live it, my brother.

[smshorttimer]

[quote=scaredycat]kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.[/quote]

Learn it, live it, my brother.

[smshorttimer]

[quote=scaredycat]kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.[/quote]

Learn it, live it, my brother.

[smshorttimer]

[quote=scaredycat]kinda like getting married — is 20% supposed to be some sign of commitment? if so, that’s just dumb.[/quote]

Learn it, live it, my brother.

[HLS]

FHA is similar to assigned risk auto insurance. If you are willing to pay the costs involved they will do business with you…

FHA-FNMA etc were INTENDED to make housing affordable….Today FHA is keeping housing UNaffordable by allowing people to buy a home at an inflated price with a low down payment. It’s just a Ponzi/Madoff scheme for now.

If you want to speculate and are willing to walk away with little invested, I suppose FHA is an option, but it’s going to cost more than conventional financing.

If you are looking to buy a home to live in and aren’t speculating, with 10% down, IF you qualify, you can get a conventional loan. You can get seller credits on FHA OR FNMA. FHA is often for suckers who are buying a home they possibly can’t afford or those who don’t understand what they are doing.

With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS

[HLS]

FHA is similar to assigned risk auto insurance. If you are willing to pay the costs involved they will do business with you…

FHA-FNMA etc were INTENDED to make housing affordable….Today FHA is keeping housing UNaffordable by allowing people to buy a home at an inflated price with a low down payment. It’s just a Ponzi/Madoff scheme for now.

If you want to speculate and are willing to walk away with little invested, I suppose FHA is an option, but it’s going to cost more than conventional financing.

If you are looking to buy a home to live in and aren’t speculating, with 10% down, IF you qualify, you can get a conventional loan. You can get seller credits on FHA OR FNMA. FHA is often for suckers who are buying a home they possibly can’t afford or those who don’t understand what they are doing.

With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS

[HLS]

FHA is similar to assigned risk auto insurance. If you are willing to pay the costs involved they will do business with you…

FHA-FNMA etc were INTENDED to make housing affordable….Today FHA is keeping housing UNaffordable by allowing people to buy a home at an inflated price with a low down payment. It’s just a Ponzi/Madoff scheme for now.

If you want to speculate and are willing to walk away with little invested, I suppose FHA is an option, but it’s going to cost more than conventional financing.

If you are looking to buy a home to live in and aren’t speculating, with 10% down, IF you qualify, you can get a conventional loan. You can get seller credits on FHA OR FNMA. FHA is often for suckers who are buying a home they possibly can’t afford or those who don’t understand what they are doing.

With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS

[HLS]

FHA is similar to assigned risk auto insurance. If you are willing to pay the costs involved they will do business with you…

FHA-FNMA etc were INTENDED to make housing affordable….Today FHA is keeping housing UNaffordable by allowing people to buy a home at an inflated price with a low down payment. It’s just a Ponzi/Madoff scheme for now.

If you want to speculate and are willing to walk away with little invested, I suppose FHA is an option, but it’s going to cost more than conventional financing.

If you are looking to buy a home to live in and aren’t speculating, with 10% down, IF you qualify, you can get a conventional loan. You can get seller credits on FHA OR FNMA. FHA is often for suckers who are buying a home they possibly can’t afford or those who don’t understand what they are doing.

With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS

[HLS]

FHA is similar to assigned risk auto insurance. If you are willing to pay the costs involved they will do business with you…

FHA-FNMA etc were INTENDED to make housing affordable….Today FHA is keeping housing UNaffordable by allowing people to buy a home at an inflated price with a low down payment. It’s just a Ponzi/Madoff scheme for now.

If you want to speculate and are willing to walk away with little invested, I suppose FHA is an option, but it’s going to cost more than conventional financing.

If you are looking to buy a home to live in and aren’t speculating, with 10% down, IF you qualify, you can get a conventional loan. You can get seller credits on FHA OR FNMA. FHA is often for suckers who are buying a home they possibly can’t afford or those who don’t understand what they are doing.

With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS

[Adebisi]

[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]

FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:

http://www.fha.com/rate-table.cfm?from=purch&ppcid=101

The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.

The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.

With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.

So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.

What’s the benefit of conventional over FHA again?

[Adebisi]

[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]

FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:

http://www.fha.com/rate-table.cfm?from=purch&ppcid=101

The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.

The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.

With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.

So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.

What’s the benefit of conventional over FHA again?

[Adebisi]

[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]

FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:

http://www.fha.com/rate-table.cfm?from=purch&ppcid=101

The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.

The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.

With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.

So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.

What’s the benefit of conventional over FHA again?

[Adebisi]

[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.

30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]

FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:

http://www.fha.com/rate-table.cfm?from=purch&ppcid=101

The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.

The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.

With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.

So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.

What’s the benefit of conventional over FHA again?

[Author]

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