Anyone here know anything about FHA loans?

I found a house that I'm DYING for...DH hasn't seen it and I'm hoping I can take him tomorrow. I still can't believe I found one in our price range that's in such amazing condition and has no drawbacks!!! Thing is, we're not ready...we don't have enough for a deposit yet. The agent suggested an FHA loan which makes it possible to put less than 3% down.

Anyone have experiences with this? I'd like to hear from real people rather than my agent and mortgage guy. Thanks!

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Posted by Brian and Marie

My hubbies a mortgage banker, I'll ask him about it!! I know he's been doing a lot of FHA loans since everything happened with the market!

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Thank you so much Marie! I'm just wondering how it works and if there are any disadvantages to it. We have good salaries, but not enough to put down on a house just yet...but if we can I'd love to grab this house ASAP!!

Thanks Marie!

Disadvantages:

* most FHA single family home limits on Long Island are $262,000 (that means you can only get a loan for that amount)
* You have to show all of your income


Advantages:

* Low interest rates starting at 6.250% on a 30 year fix
* You can get a loan for 95% of the home value with a 3% sellers concession (that means the owner of the house gives you 3% towards your closing costs)


FHA also will make you escrow 1.5% for mortagage insurance (you will have an additional $2000 in your closing costs for that)

Hope that helps if ti makes any sense!

Wow thank you Marie & your DH!

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Posted by GettinHutched

Wow thank you Marie & your DH!

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Your welcome!! Good Luck- I hope you get your DREAM house!!