Comments on: What is an FHA Home Loan?

By: Pinyo

Pinyo — Mon, 18 Aug 2008 14:45:38 +0000

@Ryan – Thank you for the update.

@Big Wizz — Thank you for the additional information. Excellent point about PMI.

@Ben — Definitely ask your broker about it. It never hurts to explore all of your options. As far as LendingClub, I have used their other products before, so I think this calculator works just as well.

By: Ben

Ben — Mon, 18 Aug 2008 14:17:27 +0000

Nice overview. I am obsessed with these sorts of things now and am glad to read this. I have heard rumors that some FHA loans are dependent on a debt to income ratio but recently learned that the details are little different. I am meeting with my broker on Wednesday and will ask about it then as well. How accurate you think that LendingTree calc is? See ya around!

By: Fixemup Terry

Fixemup Terry — Sun, 17 Aug 2008 04:30:52 +0000

Good point by Big Whiz. I’ve never taken out a FHA loan, but I’ve heard that they can take longer to process. If your in a hurry to close that could be a constraint.

However, my opinion is now is a great time to buy investment properties. Regardless of what type of loan you choose, you should be on the lookout for some low hanging fruit.

I recommend reading my recent ezinearicles.com artticle entitled “Fixer Upper Investing for the Small Investor” at the link below.
http://ezinearticles.com/?Fixe.....id=1376812

By: Nick

Nick — Fri, 08 Aug 2008 15:15:39 +0000

Yes, the new housing bill changes the down payment to 3.5%. First time home buyers can also take advantage of a $7,500 interest-free loan from the IRS in the form of a tax credit (which must then be paid back over the next 15 years or when the property is sold).

But FHA loans are a good opportunity for new buyers and ones who may not qualify for a traditional mortgage loan. In October, some foreclosure victims will also be able to tap the FHA for funds to pay off their defaulted mortgage.

By: Big Wizz

Big Wizz — Thu, 07 Aug 2008 13:50:41 +0000

One MAJOR point that was not listed. If you don’t put at least 20% down, you will obviously have PMI. However, FHA also charges a mortgage insurance premium, up front, which is 1.5% of the total value of the house. So, let’s say you’re buying a $200,000 house. You’ve just added another $3,000 to your loan.

Also, you can *never* remove escrows from your bank with a FHA loan. I like to manage my own escrows (homeowners ins. & property taxes), but with an FHA they don’t give you that option, ever. Even when you get more than 20% equity, you still cannot remove escrows.

By: Ryan

Ryan — Thu, 07 Aug 2008 13:19:28 +0000

I believe that the new housing bill changes the down payment amount to 3.5%.