FHA loans; why not?

[scaredyclassic]

the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.

[smshorttimer]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]

I admit that I’m not skilled in intelligently absorbing all of these calculations, but are you taking into the account the much-improved monthly cashflow of 20 percent down conv. vs. FHA? You could sock away the difference or use it to increase your incredibly skillful PM plays. I guess it boils down to the “walk” factor making that a moot point?

[smshorttimer]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]

I admit that I’m not skilled in intelligently absorbing all of these calculations, but are you taking into the account the much-improved monthly cashflow of 20 percent down conv. vs. FHA? You could sock away the difference or use it to increase your incredibly skillful PM plays. I guess it boils down to the “walk” factor making that a moot point?

[smshorttimer]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]

I admit that I’m not skilled in intelligently absorbing all of these calculations, but are you taking into the account the much-improved monthly cashflow of 20 percent down conv. vs. FHA? You could sock away the difference or use it to increase your incredibly skillful PM plays. I guess it boils down to the “walk” factor making that a moot point?

[smshorttimer]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]

I admit that I’m not skilled in intelligently absorbing all of these calculations, but are you taking into the account the much-improved monthly cashflow of 20 percent down conv. vs. FHA? You could sock away the difference or use it to increase your incredibly skillful PM plays. I guess it boils down to the “walk” factor making that a moot point?

[smshorttimer]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]

I admit that I’m not skilled in intelligently absorbing all of these calculations, but are you taking into the account the much-improved monthly cashflow of 20 percent down conv. vs. FHA? You could sock away the difference or use it to increase your incredibly skillful PM plays. I guess it boils down to the “walk” factor making that a moot point?

[an]

[quote=JordanT]I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?

Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.

Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?

[an]

[quote=JordanT]I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?

Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.

Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?

[an]

[quote=JordanT]I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?

Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.

Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?

[an]

[quote=JordanT]I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?

Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.

Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?

[an]

[quote=JordanT]I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?

Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.

Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?

[an]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]
Why would you take out gain/flat out of the equation, yet leave decline? Are you 100% sure price will fall by 20% by the time you want to move in 8 years? Wouldn’t you want to calculate all the scenarios? You also just brought up 11 years vs 8 years, that change the calculation quite a bit as well.

[an]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]
Why would you take out gain/flat out of the equation, yet leave decline? Are you 100% sure price will fall by 20% by the time you want to move in 8 years? Wouldn’t you want to calculate all the scenarios? You also just brought up 11 years vs 8 years, that change the calculation quite a bit as well.

[an]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]
Why would you take out gain/flat out of the equation, yet leave decline? Are you 100% sure price will fall by 20% by the time you want to move in 8 years? Wouldn’t you want to calculate all the scenarios? You also just brought up 11 years vs 8 years, that change the calculation quite a bit as well.

[an]

[quote=scaredycat]the appreciation is a gain for FHA or 20%. in order to meaningfully compare the 20% v FHA, have to take out gain/flat from the equation.[/quote]
Why would you take out gain/flat out of the equation, yet leave decline? Are you 100% sure price will fall by 20% by the time you want to move in 8 years? Wouldn’t you want to calculate all the scenarios? You also just brought up 11 years vs 8 years, that change the calculation quite a bit as well.

[Author]

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