What is the catch with the FHA loans?

[Scarlett]

[quote=HLS]
with a high credit score and a 90% loan, on a $540,000 loan my guess would be $250-$300 a month.

SDE, At this time, I still have one solid lender that offers FNMA 95% financing (5% down) for high credit scores. I think the minimum score needs to be 720.

HLS[/quote]

Thanks HLS, I wish there would be more lenders willing to do FNMA 95% financing! With good credit score, carefully documented income etc. of course.
See my post above… I have the same concerns as SDEngineer…

-Scarlett

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[AK]

I’d read in other threads that 95% LTV was available in theory, but that PMI was hard to come by in declining markets.

FHA/VA might still have advantages for >95% LTV. I’ve seen annual PMI premiums running in the 1% range for high LTV loans, while FHA premiums seem to max out at 0.55%.

The upfront FHA mortgage insurance fee still seems a bit punitive … 1.75% for purchase loans … for a while I think it was as low as 1.25% for high FICO scores but I guess risk-based pricing was politically unpalatable. Or maybe FICO scores had nothing to do with actual risk 🙂

[HLS]

I currently have 5% down FNMA available to borrowers with 700+ credit scores.
It’s the MI coverage that is the problem, and could be withdrawn at any time.

If someone qualifies for a 5% down conventional loan why would they choose to go FHA with 3.5% down and pay 1.75% funding fee ??

[HLS]

I currently have 5% down FNMA available to borrowers with 700+ credit scores.
It’s the MI coverage that is the problem, and could be withdrawn at any time.

If someone qualifies for a 5% down conventional loan why would they choose to go FHA with 3.5% down and pay 1.75% funding fee ??

[HLS]

I currently have 5% down FNMA available to borrowers with 700+ credit scores.
It’s the MI coverage that is the problem, and could be withdrawn at any time.

If someone qualifies for a 5% down conventional loan why would they choose to go FHA with 3.5% down and pay 1.75% funding fee ??

[HLS]

I currently have 5% down FNMA available to borrowers with 700+ credit scores.
It’s the MI coverage that is the problem, and could be withdrawn at any time.

If someone qualifies for a 5% down conventional loan why would they choose to go FHA with 3.5% down and pay 1.75% funding fee ??

[HLS]

I currently have 5% down FNMA available to borrowers with 700+ credit scores.
It’s the MI coverage that is the problem, and could be withdrawn at any time.

If someone qualifies for a 5% down conventional loan why would they choose to go FHA with 3.5% down and pay 1.75% funding fee ??

[Author]

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