Realtor Question on Loan

[bulldog]

So I will be getting married in April 2014. I bought a house 14 years ago (at age 20), so I used my FHA loan. My fiancée has never bought a house so she has not used her FHA loan. Is it better to have her use her FHA loan and get a house prior to use getting married and then adding me to the loan after wedding? Or can we get a house together and still qualify under her FHA loan?

Also is it even better to use a FHA loan; mainly the lower down payment that it offers? I should make at least $30K on my house when I sell it, so I could use that as a down payment on a regular home loan, but am not sure if that is the better route or the FHA loan (since I can always pay towards principle anyways). I’ve also heard that a large down payment will actually make costs lower because the ratio of what you owe is less???

Any help or advice would be appreciated.

[Ghosty]

Hit up Clovis-Justin, he'll know. He does tons of FHA loans.

[bulldog]

Hit up Clovis-Justin, he'll know. He does tons of FHA loans. Thanks. Maybe he will reply (if not I'll hit him up).....you never know it could become a sale for him down the road as I am getting a newer house for sure and would rather get a realtor I could trust :)

[jcj81]

If you can put 20% down I wouldnt want a FHA loan for your next house, or you wont need a FHA loan if you have 20% down. FHA isnt a one time deal either as far as I know, FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. So you pay more each month if you dont put 20% down, most FHA require 3.5% down or at least used to not sure what it is now.

[3point5]

my 2cents...I would put the house in your name only because it simplifies the process. I would put as much as you can down on the house…every dollar you borrow, you'll pay back two over the life of the loan. Really get a good feel for the 'truth in lending' statement they give you.

I don't think I'll ever(again) borrow on a 30year loan…I will put a massive amount of cash down and do a 10 or 15 year loan...

[Clovis]

Thanks for the endorsement Ghosty.

Bulldog, I can help clear up the confussion. Give me a call if you would like.

My office # is 719-325-7484 or my cell 719-201-9383.

Here's a summary though.

FHA is not a one time use deal. You can use FHA over and over if you really want to. You just can't have two FHA loans at the same time except under very specific circumstances. A typical circumstance would be if you had to move to a new area for a job and left your old house (with a FHA loan) behind.

FHA recently has become very expensive. I only run FHA if it's the only option.

FHA requires a 3.5% down payment. The rate is a little better then the conventional rate but where it becomes expensive is the upfront mortgage insurance premium (UMIP) and the annual mortgage insurance.

Up front is 1.75% of the loan amount and then annual is 1.35% per year.

Conventional requires a 5% down payment and the mortgage insurance is generally cheaper and there is not an upfront mortgage insurance charge. You can do either upfront one time or monthly mortgage insurance.

If your FICO score is a 680 or higher, conventional is hands down cheaper.Below 680 FHA becomes more competitive.

If it turns out FHA is the best option for you, the new loan would need to be in your fiance's name only unless you sell your house first.

Justin

[Clovis]

Oh by the way, I am not a realtor. I'm a mortgage banker. All I do is mortgage loans.

I can set you up with an excellent realtor that I work with on a regular basis and fully trust.


Thanks. Maybe he will reply (if not I'll hit him up).....you never know it could become a sale for him down the road as I am getting a newer house for sure and would rather get a realtor I could trust :)

[bulldog]

Thanks for the endorsement Ghosty.

Bulldog, I can help clear up the confussion. Give me a call if you would like.

My office # is 719-325-7484 or my cell 719-201-9383.

Here's a summary though.

FHA is not a one time use deal. You can use FHA over and over if you really want to. You just can't have two FHA loans at the same time except under very specific circumstances. A typical circumstance would be if you had to move to a new area for a job and left your old house (with a FHA loan) behind.

FHA recently has become very expensive. I only run FHA if it's the only option.

FHA requires a 3.5% down payment. The rate is a little better then the conventional rate but where it becomes expensive is the upfront mortgage insurance premium (UMIP) and the annual mortgage insurance.

Up front is 1.75% of the loan amount and then annual is 1.35% per year.

Conventional requires a 5% down payment and the mortgage insurance is generally cheaper and there is not an upfront mortgage insurance charge. You can do either upfront one time or monthly mortgage insurance.

If your FICO score is a 680 or higher, conventional is hands down cheaper.Below 680 FHA becomes more competitive.

If it turns out FHA is the best option for you, the new loan would need to be in your fiance's name only unless you sell your house first.

Justin Thanks for the info Clovis...highly appreciated :up:

Well I have a great FICO score (over 800), so seems like a standard loan is the better way to go. I always thought it was higher than a 5% down payment so I could easily do that.

Let me show the lady what you posted and we will get a hold of you to talk over some details of the loan. We still have a ways till we are married (10 months) but would be nice to find out our options and see what loans you can get us.

[DiddysR6]

you only need 5% down now for a conventional ? People have been telling me 15-20% or your loan wont get approved ? is that un-true ?