What loan would you do???

[GoUSC]

In light of the rates today, economics today, etc. I need some advice on loans. We are looking at a house and we could do either an FHA loan or conventional. We have plenty of money to put 20% down plus have healthy reserves in the bank. If we did FHA we could have even more in the bank. our ratios either way are way conservative so that’s not an issue. There are several major things I would do if we had the FHA that I wouldn’t do if we did the conventional including a two-car garage (doesn’t have one now).

So my question is, do we do the FHA and the associated costs (1.5% pt. premium plus monthly insurance fee which is around 0.5%) and make the upgrades or do we stick with the conventional 20%. I am leaning towards FHA because we can take bigger advnantage of the interest write-off and, from a historical point, the cost of money is very low right now.

Also we would use our bonuses to pay down the loan as quick as possible. We both have stable well paying jobs.

Thanks for any advice.

[JACKQLYN]

Conventional. You’ll have more leverage while placing offers.

[JACKQLYN]

Conventional. You’ll have more leverage while placing offers.

[JACKQLYN]

Conventional. You’ll have more leverage while placing offers.

[JACKQLYN]

Conventional. You’ll have more leverage while placing offers.

[JACKQLYN]

Conventional. You’ll have more leverage while placing offers.

[mgoldberg]

It depends on the numbers:

a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range

b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.

c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.

[mgoldberg]

It depends on the numbers:

a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range

b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.

c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.

[mgoldberg]

It depends on the numbers:

a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range

b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.

c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.

[mgoldberg]

It depends on the numbers:

a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range

b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.

c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.

[mgoldberg]

It depends on the numbers:

a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range

b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.

c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.

[an]

If your main reason for going FHA is to keep your asset liquid, then why pay off the loan early? Wouldn’t you want to pay the minimum required? I’d personally would go w/ the 20% conventional. I think those extra cost is just a waste of $, especially if you think you have a stable job and can easily afford the payment.

[an]

If your main reason for going FHA is to keep your asset liquid, then why pay off the loan early? Wouldn’t you want to pay the minimum required? I’d personally would go w/ the 20% conventional. I think those extra cost is just a waste of $, especially if you think you have a stable job and can easily afford the payment.

[an]

If your main reason for going FHA is to keep your asset liquid, then why pay off the loan early? Wouldn’t you want to pay the minimum required? I’d personally would go w/ the 20% conventional. I think those extra cost is just a waste of $, especially if you think you have a stable job and can easily afford the payment.

[an]

If your main reason for going FHA is to keep your asset liquid, then why pay off the loan early? Wouldn’t you want to pay the minimum required? I’d personally would go w/ the 20% conventional. I think those extra cost is just a waste of $, especially if you think you have a stable job and can easily afford the payment.

[Author]

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