(Closed) FHA or Coventional?

posted 8 years ago in Home
Post # 18
Member
2492 posts
Buzzing bee
  • Wedding: May 2018

@Kimber_bee:  PMI is not for the life of the loan- it’s until you reach 20% of the purchase price- usually about 5 years. It’s all so confusing. I did FHA and haven’t had any problems and 4 years from now I will pay $200 less a month!

Post # 19
Member
1474 posts
Bumble bee
  • Wedding: December 2012

@mamadingdong:  It was recently changed where now the PMI is required for the life of the loan.

Post # 20
Member
248 posts
Helper bee
  • Wedding: December 2018

@mamadingdong:   That is bc you got your fha loan years ago.  Now you are required to pay pmi for the life of the loan. I  have friends who just bought houses with an fha loan and they were  not happy to find that out.

I  would wait to build my credit if I were you.  Why pay more when you have the money?

Post # 21
Member
8941 posts
Buzzing Beekeeper
  • Wedding: June 2009

I would wait to build up your credit before getting a loan. Loan rates will probably stay low for a while longer still and if you are willing to put down some extra money in the future, it might help to grease the wheels on a loan.

Do your parents happen to have good credit? If so, they could add you to their longest held credit card and you will get that history as well. I have history from when I was a little kid because of this so it gave me an instant credit boost.

Post # 22
Member
338 posts
Helper bee
  • Wedding: January 2010

@Kimber_bee:  Wait to build up your credit, and do a first time home buyers in the process!

Post # 24
Member
4560 posts
Honey bee
  • Wedding: October 2010

@Kimber_bee:  Try looking into Credit Unions. Look to see if you qualify for membership (look into schools, universities, workplaces, county/state, occupation, etc). But some CU dont mandate that you be a member to get a loan through them. NASA FCU was advertising in our area for a 0% down, no PMI loan and you dont have to be a member.

For anyone who qualifies to be a member of Navy FCU, become one ASAP! We got our loan last year which was 0% down, no PMI with just a 1.75% funding fee (that was tax deductable). Our interest rate was slightly higher (about what they are now), but it was nice not to have to pay PMI. 

Good Luck!

Post # 25
Member
168 posts
Blushing bee
  • Wedding: May 2012

@MariContrary:  This is really good info about the construction loan…..We will bring this up to our lender! Thanks for letting me know.

Post # 27
Member
2343 posts
Buzzing bee

@mrshoneybee:  they only have a skeleton crew working. It’s literally a couple handfuls of people. Loans will take MONTHS to be pushed through if the government remains closed

Post # 28
Member
762 posts
Busy bee
  • Wedding: July 2009

@Kimber_bee:  FHA requires a pretty high credit score (above 724), so if you do not qualify for a conventional loan, I find it unlikely that you will qualify for FHA.  Your realtor is correct you will have to pay for PMI for the life of the loan.  While you could refinance, your lender will likely put some time restrictions (example, no refinancing for two years). 

 

I own properties using both FHA and conventional, and the credit score you need for FHA was 724 back in 2009 when we bought our first property.  Good luck

EDIT:  some lenders will allow you to do FHA with less desirable scores, but the lender we used required 724. Just FYI you might need to shop for lenders.  

Post # 29
Member
762 posts
Busy bee
  • Wedding: July 2009

@mamadingdong:  That’s no longer the case.  Effective June 1, 2013. FHA requires PMI for the life of the loan.  My FHA loan is under the terms you specify, but those loans no longer exist.  

Post # 30
Member
2492 posts
Buzzing bee
  • Wedding: May 2018

@AngelR88:  yup. Been told twice! No need to shoot me- my mistake. 

Post # 31
Member
762 posts
Busy bee
  • Wedding: July 2009

@mamadingdong:  I thought it would be obvious that I did not read the entire thread when I replied to you.  Otherwise I would not have wasted your time or mine.  😉

 

The topic ‘FHA or Coventional?’ is closed to new replies.

Find Amazing Vendors