FHA LOAN

[Daisy.Chain 317]

We just bought a house too. It was worth it for us to wait to get to 20% or above for the downpayment. That way you avoid private mortgage insurance and have a lower payment. We like the 15-year plan. 

 

OP, don't forget to plan for an emergency fund as well, just in case!

Edited December 19, 2020 by Daisy.Chain
Wrong term!

[dbLA 15]

Fannie Mae was offering a first time buyers loan which was 5% conventional and if you took the first time buyers on line course and passes the test they covered the closing costs, You have a monthly PMI but you can always refinance down the road as long as the house increases in equity and get rid of the PMI, Speak to a professional they should be able to guide you in the right direction.  

[SalishSea 18,125]

29 minutes ago, Daisy.Chain said:

It was worth it for us to wait to get to 20% or above for the downpayment. That way you avoid private mortgage insurance and have a lower payment.

In some real estate markets, like much of the west coast, this would mean coming up with >$100K in cash for a starter home.

[Orangesapples 1,954]

3 hours ago, Harlene L said:

My lender says base on my credit score and credit history background he can only help me now the FHA loan or maybe a conventional loan? Which i dont know also yet about what a conventional loan is. But the lender told me he will discuss it to me everything when I found a house already that I am willing to buy. Also i heard about that HUD also but no exact idea or understanding about it. I am originally from the Philippines and now a US Citizen recently and did not have any idea about credit score or credit history. So only this year 2020 month of May i did two $1,000 personal loan and open two credit card limit for $500 and $1,000 in two different bank so i can start building my credit score or background. I never owe any money since i got here in America. What i does when i started working here i always save my money to my bank and always purchase anything through my savings money or pay cash. So i never really experience being on debt or borrowing because i always have savings money to use to go grocery buy gas and so on. Now im on 6months since i started building my credit background and thats the lender told me about FHA loan or conventional. Thank you

You should get a credit card, both for building credit (very important in the US) and for getting points on your purchases. Just use it as you would use a debit card, only buy what you can pay for, and pay it in full every month. This is a free way to build credit. 

[Orangesapples 1,954]

1 hour ago, Jorgedig said:

In some real estate markets, like much of the west coast, this would mean coming up with >$100K in cash for a starter home.

You'd be lucky to get a house here in orange county without a horrible land lease or some other big catches, where even $100K is enough for 20%.

[SalishSea 18,125]

29 minutes ago, Orangesapples said:

You'd be lucky to get a house here in orange county without a horrible land lease or some other big catches, where even $100K is enough for 20%.

Same with Seattle.

[Ontarkie 14,435]

~~Moved to Moving Here and Your New Life, form K1 P&P - the OP is asking about home loans and the public charge rule, not a K1 Processing question.~~

[JeanneAdil 6,624]

16 hours ago, Cyberfx1024 said:

Well for a VA loan they bundle everything in with the payment. So I pay my mortgae, taxes, and insurance in one payment which is good.

 

My wife likes to use mulch around the plants and trees. I take her word for it because she is the one with the green thumb. My son is going to hate tomorrow because I plan on us clearing at least 1/2-1 acre of brush tomorrow to help extend the pasture out. 

yeah,  most mortagages are bundled but a few states like NY state is making the lender pay interest on the section of payment  that is taken for taxes and insurance so now many lenders went to only mortgage and PMI in that state (this was passed by NY state years ago and if anyone is not getting interest credit on monies added to bundle if in that state,,   see lender about it

 

I don't have mine bundled as we put 45 % down and paid our own closing costs so i am billed for homeowner's insurance and taxes and life insurance paid this off when husband passed

 

the other beauty of the FHA loan is usually covered as follows:

Borrowers will typically be required to pay for mortgage insurance on an FHA or USDA mortgage. ... These policies will vary among insurance companies, but generally the death benefit will be an amount that will pay off the mortgage in the event of the borrower's death.Jul 14, 2019

 

the OP will more than likely have closing costs included in the loan as that is the popular way to do FHA loans

[Allovertheworld 355]

On 12/18/2020 at 6:48 PM, Harlene L said:

Hello what is a 5% conventional? And what is a PMI means and stands for? Thank you

PMI or MIP is basically a scam to get more money from the borrower.

 

Any way to get around it would be suggested by me

[Orangesapples 1,954]

2 hours ago, Allovertheworld said:

PMI or MIP is basically a scam to get more money from the borrower.

 

Any way to get around it would be suggested by me

It's not a scam, it's a safety net for the lender when they give you a loan for a property that you don't have at least 80% equity in. They don't require it if you have a big enough down payment and they drop it after you have paid off enough of the principal. 

 

Sometimes it makes sense to take a loan with PMI. Here in SoCal for example, property prices go up so fast that waiting to save for a 20% down payment might end up costing you more money than just buying a home with PMI. Also, PMI is not that much compared to the mortgage payment. It's a case by case basis, sometimes it makes sense to take a loan with PMI, sometimes it doesn't. 

[Allovertheworld 355]

2 hours ago, Orangesapples said:

It's not a scam, it's a safety net for the lender when they give you a loan for a property that you don't have at least 80% equity in. They don't require it if you have a big enough down payment and they drop it after you have paid off enough of the principal. 

 

Sometimes it makes sense to take a loan with PMI. Here in SoCal for example, property prices go up so fast that waiting to save for a 20% down payment might end up costing you more money than just buying a home with PMI. Also, PMI is not that much compared to the mortgage payment. It's a case by case basis, sometimes it makes sense to take a loan with PMI, sometimes it doesn't. 

It's a scam

 

Nothing more than to get more money from an individual

 

I had a foreclosure house I was about to get and the PMI company came out of the woodworks and bought the house out from me, and yes it is a scam to get more money