[GoUSC]

Our offer is all cash with no loan contingency. In the meantime we are going through the hurdles to put the FHA loan in place. If at the end of 30 days we don’t have the loan we will close with all cash and then refinance. We won’t be able to do a 3.5% dp though..therefore our mortgage broker better earn his keep and get the deal done. But I am not worried, today is day one and our loan is going into underwriting first thing tomorrow morning (we had all our docs lined up and ready to go).

[GoUSC]

padre:

I mean our PITI payment is (for example) $3000. With the tax writeoff it is effectively $2500. For us to rent the equivalent house in the LJ school district similar to this house would cost $3000. This is all based on an FHA loan with a DP of 3.5%. Make sense?

The numbers I used are arbitrary but convey the point.

We did the FHA loan for a few reasons (we are all cash with no loan contingency but are still planning to go FHA):
1. We can afford the mortgage even with the low DP no problem.
2. The interest rate etc. is similar to a typical 30 year conventional.
3. Money is cheap right now so I might as well borrow as much as I can.
4. Maximize interest write-off.
…and lastly…
5. I am not stupid. The world is crazy right now. Who knows we might go into a depression and both of us might lose our jobs. With the FHA loan I keep a significant amount of cash and cash-equivalent on hand as needed. Both my fiancee and I have jobs with big bonuses so we can use those to pay down principal as we deem fit. The FHA insurance premium bleeds off after 5 years or you can pay the loan down to LTV of 80% and you can get rid of it.

[GoUSC]

padre:

I mean our PITI payment is (for example) $3000. With the tax writeoff it is effectively $2500. For us to rent the equivalent house in the LJ school district similar to this house would cost $3000. This is all based on an FHA loan with a DP of 3.5%. Make sense?

The numbers I used are arbitrary but convey the point.

We did the FHA loan for a few reasons (we are all cash with no loan contingency but are still planning to go FHA):
1. We can afford the mortgage even with the low DP no problem.
2. The interest rate etc. is similar to a typical 30 year conventional.
3. Money is cheap right now so I might as well borrow as much as I can.
4. Maximize interest write-off.
…and lastly…
5. I am not stupid. The world is crazy right now. Who knows we might go into a depression and both of us might lose our jobs. With the FHA loan I keep a significant amount of cash and cash-equivalent on hand as needed. Both my fiancee and I have jobs with big bonuses so we can use those to pay down principal as we deem fit. The FHA insurance premium bleeds off after 5 years or you can pay the loan down to LTV of 80% and you can get rid of it.

[GoUSC]

padre:

I mean our PITI payment is (for example) $3000. With the tax writeoff it is effectively $2500. For us to rent the equivalent house in the LJ school district similar to this house would cost $3000. This is all based on an FHA loan with a DP of 3.5%. Make sense?

The numbers I used are arbitrary but convey the point.

We did the FHA loan for a few reasons (we are all cash with no loan contingency but are still planning to go FHA):
1. We can afford the mortgage even with the low DP no problem.
2. The interest rate etc. is similar to a typical 30 year conventional.
3. Money is cheap right now so I might as well borrow as much as I can.
4. Maximize interest write-off.
…and lastly…
5. I am not stupid. The world is crazy right now. Who knows we might go into a depression and both of us might lose our jobs. With the FHA loan I keep a significant amount of cash and cash-equivalent on hand as needed. Both my fiancee and I have jobs with big bonuses so we can use those to pay down principal as we deem fit. The FHA insurance premium bleeds off after 5 years or you can pay the loan down to LTV of 80% and you can get rid of it.

[GoUSC]

padre:

I mean our PITI payment is (for example) $3000. With the tax writeoff it is effectively $2500. For us to rent the equivalent house in the LJ school district similar to this house would cost $3000. This is all based on an FHA loan with a DP of 3.5%. Make sense?

The numbers I used are arbitrary but convey the point.

We did the FHA loan for a few reasons (we are all cash with no loan contingency but are still planning to go FHA):
1. We can afford the mortgage even with the low DP no problem.
2. The interest rate etc. is similar to a typical 30 year conventional.
3. Money is cheap right now so I might as well borrow as much as I can.
4. Maximize interest write-off.
…and lastly…
5. I am not stupid. The world is crazy right now. Who knows we might go into a depression and both of us might lose our jobs. With the FHA loan I keep a significant amount of cash and cash-equivalent on hand as needed. Both my fiancee and I have jobs with big bonuses so we can use those to pay down principal as we deem fit. The FHA insurance premium bleeds off after 5 years or you can pay the loan down to LTV of 80% and you can get rid of it.

[GoUSC]

padre:

I mean our PITI payment is (for example) $3000. With the tax writeoff it is effectively $2500. For us to rent the equivalent house in the LJ school district similar to this house would cost $3000. This is all based on an FHA loan with a DP of 3.5%. Make sense?

The numbers I used are arbitrary but convey the point.

We did the FHA loan for a few reasons (we are all cash with no loan contingency but are still planning to go FHA):
1. We can afford the mortgage even with the low DP no problem.
2. The interest rate etc. is similar to a typical 30 year conventional.
3. Money is cheap right now so I might as well borrow as much as I can.
4. Maximize interest write-off.
…and lastly…
5. I am not stupid. The world is crazy right now. Who knows we might go into a depression and both of us might lose our jobs. With the FHA loan I keep a significant amount of cash and cash-equivalent on hand as needed. Both my fiancee and I have jobs with big bonuses so we can use those to pay down principal as we deem fit. The FHA insurance premium bleeds off after 5 years or you can pay the loan down to LTV of 80% and you can get rid of it.

[GoUSC]

Quick correction…I type too fast! Our cost of living (PITI) will be cheaper than RENTING an equivalent house (factoring in the tax writeoff). This is factoring in doing an FHA Loan with 3.5% down. On a similar note we have taking the doomsday approach and can easily afford the house on one income if need be.

[GoUSC]

Quick correction…I type too fast! Our cost of living (PITI) will be cheaper than RENTING an equivalent house (factoring in the tax writeoff). This is factoring in doing an FHA Loan with 3.5% down. On a similar note we have taking the doomsday approach and can easily afford the house on one income if need be.

[GoUSC]

Quick correction…I type too fast! Our cost of living (PITI) will be cheaper than RENTING an equivalent house (factoring in the tax writeoff). This is factoring in doing an FHA Loan with 3.5% down. On a similar note we have taking the doomsday approach and can easily afford the house on one income if need be.

[GoUSC]

Quick correction…I type too fast! Our cost of living (PITI) will be cheaper than RENTING an equivalent house (factoring in the tax writeoff). This is factoring in doing an FHA Loan with 3.5% down. On a similar note we have taking the doomsday approach and can easily afford the house on one income if need be.

[GoUSC]

Quick correction…I type too fast! Our cost of living (PITI) will be cheaper than RENTING an equivalent house (factoring in the tax writeoff). This is factoring in doing an FHA Loan with 3.5% down. On a similar note we have taking the doomsday approach and can easily afford the house on one income if need be.

[GoUSC]

Our offer is actually all-cash so loan type won’t make a difference. We are then going to put financing on it.

Our reasoning behind the FHA structure is that I am of the opinion that cash is king, especially right now. The FHA loan is cheap money and the overall costs are minimal. If my fiancee gets the bonus she is expecting this year then we would use it to pay down the loan to less than 80% LTV and get rid of the insurance cost.

I have heard the interest rate is very close if not the same to traditional financing.

FYI the game plan is to hold the house for a few years then rent it out and buy our next house. Of course that all depends on where the market goes, where our jobs go, etc.

[GoUSC]

Our offer is actually all-cash so loan type won’t make a difference. We are then going to put financing on it.

Our reasoning behind the FHA structure is that I am of the opinion that cash is king, especially right now. The FHA loan is cheap money and the overall costs are minimal. If my fiancee gets the bonus she is expecting this year then we would use it to pay down the loan to less than 80% LTV and get rid of the insurance cost.

I have heard the interest rate is very close if not the same to traditional financing.

FYI the game plan is to hold the house for a few years then rent it out and buy our next house. Of course that all depends on where the market goes, where our jobs go, etc.

[GoUSC]

Our offer is actually all-cash so loan type won’t make a difference. We are then going to put financing on it.

Our reasoning behind the FHA structure is that I am of the opinion that cash is king, especially right now. The FHA loan is cheap money and the overall costs are minimal. If my fiancee gets the bonus she is expecting this year then we would use it to pay down the loan to less than 80% LTV and get rid of the insurance cost.

I have heard the interest rate is very close if not the same to traditional financing.

FYI the game plan is to hold the house for a few years then rent it out and buy our next house. Of course that all depends on where the market goes, where our jobs go, etc.

[GoUSC]

Our offer is actually all-cash so loan type won’t make a difference. We are then going to put financing on it.

Our reasoning behind the FHA structure is that I am of the opinion that cash is king, especially right now. The FHA loan is cheap money and the overall costs are minimal. If my fiancee gets the bonus she is expecting this year then we would use it to pay down the loan to less than 80% LTV and get rid of the insurance cost.

I have heard the interest rate is very close if not the same to traditional financing.

FYI the game plan is to hold the house for a few years then rent it out and buy our next house. Of course that all depends on where the market goes, where our jobs go, etc.

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