FHA loans; why not?

[recordsclerk]

FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.

[Adebisi]

[quote=recordsclerk]FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.[/quote]

Good point. But aren’t most of the foreclosures going to all-cash buyers who then flip it to someone with a government-backed loan? Or, are people with conventional loans and 20% down also able to compete in the foreclosure market?

[Adebisi]

[quote=recordsclerk]FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.[/quote]

Good point. But aren’t most of the foreclosures going to all-cash buyers who then flip it to someone with a government-backed loan? Or, are people with conventional loans and 20% down also able to compete in the foreclosure market?

[Adebisi]

[quote=recordsclerk]FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.[/quote]

Good point. But aren’t most of the foreclosures going to all-cash buyers who then flip it to someone with a government-backed loan? Or, are people with conventional loans and 20% down also able to compete in the foreclosure market?

[Adebisi]

[quote=recordsclerk]FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.[/quote]

Good point. But aren’t most of the foreclosures going to all-cash buyers who then flip it to someone with a government-backed loan? Or, are people with conventional loans and 20% down also able to compete in the foreclosure market?

[Adebisi]

[quote=recordsclerk]FHA buyers have fewer homes to choose from. Many foreclosures cannot go FHA due to the 90-day rule. In addition, FHA buyers have to bid higher to get the same house over a conventional buyer. You can add this to the opportunity cost of going with FHA. Not only is there a financial cost, but there is a potential lose of quality.[/quote]

Good point. But aren’t most of the foreclosures going to all-cash buyers who then flip it to someone with a government-backed loan? Or, are people with conventional loans and 20% down also able to compete in the foreclosure market?

[scaredyclassic]

FROM THE INTERNET SOMEWHERE (re: FHA PMI)—

…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”

I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…

[scaredyclassic]

FROM THE INTERNET SOMEWHERE (re: FHA PMI)—

…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”

I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…

[scaredyclassic]

FROM THE INTERNET SOMEWHERE (re: FHA PMI)—

…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”

I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…

[scaredyclassic]

FROM THE INTERNET SOMEWHERE (re: FHA PMI)—

…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”

I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…

[scaredyclassic]

FROM THE INTERNET SOMEWHERE (re: FHA PMI)—

…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”

I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…

[smshorttimer]

[quote=HLS]smshort…
If you are considering putting 15% and paying mortgage insurance, but you have the ability to put 20% down and avoid mortgage insurance completely, at that point it will be expensive money to not come up with the extra 5%…
The OP willing to walk away and take a credit hit is a different angle.

Others that talk about potential investment returns and lost opportunity value by larger down payments are just gambling.
Other advice posted is the ignorant leading the blind or vice versa.[/quote]

I’ve run the numbers many, many times in comparing different loan products and down payments. Yes, I get that I’d be paying a monthly fee for essentially peace of mind — larger cash reserve in case of job loss, mostly, and I think that’s going to win over. A double-dipper seems to be all but expected, and I am in an industry that’s considered vulnerable by most. Perhaps less so considering we’ve endured considerable workforce cuts and other cost-cutting, but still vulnerable.

But I’m still a sucker for putting down far more than a few grand.

[smshorttimer]

[quote=HLS]smshort…
If you are considering putting 15% and paying mortgage insurance, but you have the ability to put 20% down and avoid mortgage insurance completely, at that point it will be expensive money to not come up with the extra 5%…
The OP willing to walk away and take a credit hit is a different angle.

Others that talk about potential investment returns and lost opportunity value by larger down payments are just gambling.
Other advice posted is the ignorant leading the blind or vice versa.[/quote]

I’ve run the numbers many, many times in comparing different loan products and down payments. Yes, I get that I’d be paying a monthly fee for essentially peace of mind — larger cash reserve in case of job loss, mostly, and I think that’s going to win over. A double-dipper seems to be all but expected, and I am in an industry that’s considered vulnerable by most. Perhaps less so considering we’ve endured considerable workforce cuts and other cost-cutting, but still vulnerable.

But I’m still a sucker for putting down far more than a few grand.

[smshorttimer]

[quote=HLS]smshort…
If you are considering putting 15% and paying mortgage insurance, but you have the ability to put 20% down and avoid mortgage insurance completely, at that point it will be expensive money to not come up with the extra 5%…
The OP willing to walk away and take a credit hit is a different angle.

Others that talk about potential investment returns and lost opportunity value by larger down payments are just gambling.
Other advice posted is the ignorant leading the blind or vice versa.[/quote]

I’ve run the numbers many, many times in comparing different loan products and down payments. Yes, I get that I’d be paying a monthly fee for essentially peace of mind — larger cash reserve in case of job loss, mostly, and I think that’s going to win over. A double-dipper seems to be all but expected, and I am in an industry that’s considered vulnerable by most. Perhaps less so considering we’ve endured considerable workforce cuts and other cost-cutting, but still vulnerable.

But I’m still a sucker for putting down far more than a few grand.

[smshorttimer]

[quote=HLS]smshort…
If you are considering putting 15% and paying mortgage insurance, but you have the ability to put 20% down and avoid mortgage insurance completely, at that point it will be expensive money to not come up with the extra 5%…
The OP willing to walk away and take a credit hit is a different angle.

Others that talk about potential investment returns and lost opportunity value by larger down payments are just gambling.
Other advice posted is the ignorant leading the blind or vice versa.[/quote]

I’ve run the numbers many, many times in comparing different loan products and down payments. Yes, I get that I’d be paying a monthly fee for essentially peace of mind — larger cash reserve in case of job loss, mostly, and I think that’s going to win over. A double-dipper seems to be all but expected, and I am in an industry that’s considered vulnerable by most. Perhaps less so considering we’ve endured considerable workforce cuts and other cost-cutting, but still vulnerable.

But I’m still a sucker for putting down far more than a few grand.

[Author]

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