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  • November 26, 2009 at 11:06 AM #487997
    Adebisi
    Participant

    [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?

    November 26, 2009 at 11:26 AM #487137
    HLS
    Participant

    Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.

    November 26, 2009 at 11:26 AM #487304
    HLS
    Participant

    Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.

    November 26, 2009 at 11:26 AM #487684
    HLS
    Participant

    Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.

    November 26, 2009 at 11:26 AM #487771
    HLS
    Participant

    Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.

    November 26, 2009 at 11:26 AM #488002
    HLS
    Participant

    Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.

    November 26, 2009 at 11:55 AM #487147
    Adebisi
    Participant

    [quote=HLS]Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]

    What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?

    November 26, 2009 at 11:55 AM #487314
    Adebisi
    Participant

    [quote=HLS]Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]

    What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?

    November 26, 2009 at 11:55 AM #487694
    Adebisi
    Participant

    [quote=HLS]Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]

    What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?

    November 26, 2009 at 11:55 AM #487781
    Adebisi
    Participant

    [quote=HLS]Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]

    What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?

    November 26, 2009 at 11:55 AM #488012
    Adebisi
    Participant

    [quote=HLS]Adebisi
    Only a fool compares a 5/1 ARM to a 30YR fixed.
    FHA doesn’t blow anything away.
    I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]

    What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?

    November 26, 2009 at 1:55 PM #487187
    patientrenter
    Participant

    Adebisi, are you an employee of the Joint Congressional /Fed Reserve / Treasury / NAR Committee to Reflate Home Prices?

    November 26, 2009 at 1:55 PM #487354
    patientrenter
    Participant

    Adebisi, are you an employee of the Joint Congressional /Fed Reserve / Treasury / NAR Committee to Reflate Home Prices?

    November 26, 2009 at 1:55 PM #487734
    patientrenter
    Participant

    Adebisi, are you an employee of the Joint Congressional /Fed Reserve / Treasury / NAR Committee to Reflate Home Prices?

    November 26, 2009 at 1:55 PM #487821
    patientrenter
    Participant

    Adebisi, are you an employee of the Joint Congressional /Fed Reserve / Treasury / NAR Committee to Reflate Home Prices?

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