FHA loans; why not?

[patientrenter]

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

[scaredyclassic]

so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?

[scaredyclassic]

so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?

[scaredyclassic]

so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?

[scaredyclassic]

so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?

[scaredyclassic]

so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?

[CA renter]

[quote=HLS]
You can get seller credits on FHA OR FNMA. HLS[/quote]

What percentage of the selling price (6% or?) can these credits be?

What is the stated/unstated purpose of these credits?

Is the amount of these credits recorded as part of the price of the house (e.g. if a house is priced at $100K, and the seller credits the buyer $6,000, is the price recorded as $100K or $94K)? If it’s recorded at $100K, isn’t the lender concerned that the prices do not reflect reality?

[CA renter]

[quote=HLS]
You can get seller credits on FHA OR FNMA. HLS[/quote]

What percentage of the selling price (6% or?) can these credits be?

What is the stated/unstated purpose of these credits?

Is the amount of these credits recorded as part of the price of the house (e.g. if a house is priced at $100K, and the seller credits the buyer $6,000, is the price recorded as $100K or $94K)? If it’s recorded at $100K, isn’t the lender concerned that the prices do not reflect reality?

[CA renter]

[quote=HLS]
You can get seller credits on FHA OR FNMA. HLS[/quote]

What percentage of the selling price (6% or?) can these credits be?

What is the stated/unstated purpose of these credits?

Is the amount of these credits recorded as part of the price of the house (e.g. if a house is priced at $100K, and the seller credits the buyer $6,000, is the price recorded as $100K or $94K)? If it’s recorded at $100K, isn’t the lender concerned that the prices do not reflect reality?

[CA renter]

[quote=HLS]
You can get seller credits on FHA OR FNMA. HLS[/quote]

What percentage of the selling price (6% or?) can these credits be?

What is the stated/unstated purpose of these credits?

Is the amount of these credits recorded as part of the price of the house (e.g. if a house is priced at $100K, and the seller credits the buyer $6,000, is the price recorded as $100K or $94K)? If it’s recorded at $100K, isn’t the lender concerned that the prices do not reflect reality?

[CA renter]

[quote=HLS]
You can get seller credits on FHA OR FNMA. HLS[/quote]

What percentage of the selling price (6% or?) can these credits be?

What is the stated/unstated purpose of these credits?

Is the amount of these credits recorded as part of the price of the house (e.g. if a house is priced at $100K, and the seller credits the buyer $6,000, is the price recorded as $100K or $94K)? If it’s recorded at $100K, isn’t the lender concerned that the prices do not reflect reality?

[an]

[quote=scaredycat]so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?[/quote]
To do a quick comparison, I search around the net for current FHA rate and conventional loan rates. FHA right now is 5.375% and conventional is 4.75%. Both of these rates assume you can qualify and 0 points for both to keep it simple. With the both loans, my calculation is based on 0% down only to eliminate the opportunity cost of the down payment variable. The rate however was for a 20% down for conventional and 3.5% down for FHA. The loan amount is use is $400k.

Conventional loan monthly payment – $2086
FHA loan monthly payment + MMI = $2405

The 1.5% loan fee for FHA is ~$6000.

So, the monthly cost difference is $319/month + $6k initial cost. Every year you don’t walk away, you’re paying $3828 more than you need to. If you plan on walking away, wouldn’t it be cheapest to just rent and wait for the market to crash some more? Even w/ FHA, walking will cost at least $20k, not counting every month you live there, that’s another $319. Do you think this extra cost is worth it to give you an option to walk away?

[an]

[quote=scaredycat]so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?[/quote]
To do a quick comparison, I search around the net for current FHA rate and conventional loan rates. FHA right now is 5.375% and conventional is 4.75%. Both of these rates assume you can qualify and 0 points for both to keep it simple. With the both loans, my calculation is based on 0% down only to eliminate the opportunity cost of the down payment variable. The rate however was for a 20% down for conventional and 3.5% down for FHA. The loan amount is use is $400k.

Conventional loan monthly payment – $2086
FHA loan monthly payment + MMI = $2405

The 1.5% loan fee for FHA is ~$6000.

So, the monthly cost difference is $319/month + $6k initial cost. Every year you don’t walk away, you’re paying $3828 more than you need to. If you plan on walking away, wouldn’t it be cheapest to just rent and wait for the market to crash some more? Even w/ FHA, walking will cost at least $20k, not counting every month you live there, that’s another $319. Do you think this extra cost is worth it to give you an option to walk away?

[an]

[quote=scaredycat]so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?[/quote]
To do a quick comparison, I search around the net for current FHA rate and conventional loan rates. FHA right now is 5.375% and conventional is 4.75%. Both of these rates assume you can qualify and 0 points for both to keep it simple. With the both loans, my calculation is based on 0% down only to eliminate the opportunity cost of the down payment variable. The rate however was for a 20% down for conventional and 3.5% down for FHA. The loan amount is use is $400k.

Conventional loan monthly payment – $2086
FHA loan monthly payment + MMI = $2405

The 1.5% loan fee for FHA is ~$6000.

So, the monthly cost difference is $319/month + $6k initial cost. Every year you don’t walk away, you’re paying $3828 more than you need to. If you plan on walking away, wouldn’t it be cheapest to just rent and wait for the market to crash some more? Even w/ FHA, walking will cost at least $20k, not counting every month you live there, that’s another $319. Do you think this extra cost is worth it to give you an option to walk away?

[an]

[quote=scaredycat]so, what do the numbers look like, say on a 250,000 house. fha w/3.5%, reg 20% loan. How much more a month is it? and does the PMI expire in 5 years?[/quote]
To do a quick comparison, I search around the net for current FHA rate and conventional loan rates. FHA right now is 5.375% and conventional is 4.75%. Both of these rates assume you can qualify and 0 points for both to keep it simple. With the both loans, my calculation is based on 0% down only to eliminate the opportunity cost of the down payment variable. The rate however was for a 20% down for conventional and 3.5% down for FHA. The loan amount is use is $400k.

Conventional loan monthly payment – $2086
FHA loan monthly payment + MMI = $2405

The 1.5% loan fee for FHA is ~$6000.

So, the monthly cost difference is $319/month + $6k initial cost. Every year you don’t walk away, you’re paying $3828 more than you need to. If you plan on walking away, wouldn’t it be cheapest to just rent and wait for the market to crash some more? Even w/ FHA, walking will cost at least $20k, not counting every month you live there, that’s another $319. Do you think this extra cost is worth it to give you an option to walk away?

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