What's the pros/cons of an FHA home loan vs. Conventional home loan?
816818
There ism't much difference. FHA does have MIP, but just like PMI with conventional loans, you can file to have it removed once you owe less than 80% on the house. If you are refinancing you may already have enough equity in the house to not even worry about MIP or PMI. \n\nFHA rates are lower because the payments are insured by the government, and they usually want you to stay in the house a certain amount of time before selling it. But, there isn't really a big difference.\n\nGo for the best rate, 3% saves you alot of money no matter how you look at it.
993402
There are many reasons why people are turned down for mortgages both VA and conventional. \nhttp://www.lendermark.com/why_was_my_loan_denied.htm
360376
It really depends on the overall picture. The blended rate on 2 loans could be close to the one loan option, but with the 1 loan option you will probably pay Mortgage Insurance.\n\nThe rates on the 20% 2nd loans have really gone through the roof, so the 1 loan options are starting to look better again.\n\nAs far as closing costs, it really depends on the type of loan and the lender you are using.  The Bank that I work at charges very little on fees and we have no junk fees that I see other lenders use.  But being that their are 2 loans there are more costs than just one loan.\n\nYou should have your lender go over the difference in total monthly payments and difference in closing costs for the 2 options and see which one looks better.\n\nWith 2 loans, chances are you will want to refi or combine the 2 together within a few years if you have built up equity.  With one loan, if you are paying Mortgage Insurance, after 2 years if your value has increased, you may be able to eliminate the Mortgage Insurance and your payment goes down.  Not the case with 2 loans.\n\nS, look at the overall payments and costs and ask yourself if you plan on being in the same house or same mortgages for more than 2 years.
141210
I would try RegionalMortgages.com\nWhy are you going NoDoc?  Self-Employed?\nIf not try to avoid NoDoc as the rates are typically higher than traditional mortgages.
1002542
A VA loan has a 2% VA funding fee, and the seller is required to pay a portion of the buyers closing costs. VA loans are great in a buyers market, not so good when it is a sellers market. Most sellers would rather take an offer with a conventional loan.
365920
If the loan is an interest only loan you don't have to refinance. If it is a balloon you do have to refinance.  An interest only loan should only be used to purchase either a larger home than the one affordable using a conventional loan (if you plan on keeping it) or a home that you plan on selling it before the I/O term selected expires (very useful in hot markets where properties appreciate a lot in 5-7 yrs). But if the house is not in a hot market and you expect to live it forever then you should go with a conventional loan. As to what happens to the interest paid, you can deduct it from your taxes if your state allows for such a deduction.  Another good use for an I/O loan is when interest rates are high and you plan on refinancing when these come down.
819863
Shop shop shop for your loan.  Different lenders offer different deals depending on how much money they "have to move".  Sounds like you want a fixed rate loan.  Don't pay "points" or loan origination fees unless the difference in the interest rate provides a lower payment that pays back that much money in the time you are fairly certain you will stay in the home.\n\nYou have some chance that you will lock in a fixed rate and then rates will fall later, but rates are fairly low historically still.  You probably face a higher interest rate risk by taking an adjustable rate mortgage, and you have said you don't want that kind of risk.\n\nIf you are buying a starter home and know you will be moving in 5 years or less, consider a 5 year ARM (adjustable rate mortgage), but only if the rate is a meaningful amount less than the current fixed rate mortgage with the same (other) terms.
946181
Depends on the state you are in. Check with your bank first. They might be willing to do it. Most lenders won't want to mess with that. A land/home package would be better and get you a better interest rate.
651400
Again, people expounding advise with no idea what they're talking about. FHA loans are designed for this purpose. FHA loans require 3% down. There are even private grant monies available for FHA down payments. FHA loans are not based on credit scores. FHA loans are based on your ability to pay. Period. You do need at least one year of good payment history behind you. Your scores mean nothing
319248
The equity in real estate is better, since cars are apt to either go missing or be destroyed, making the odds of a repo smaller, whereas a house the odds are much better.\nIt is always on the mind of any lender when making a loan, the "What If" clause if they need to recover their money.\nHope this helps\nJohn
499830
The answer is absolutely yes, it is something to consider.\n\nThe 80/20 was invented to avoid Private Mortgage Insurance (PMI).  Whenever you borrow more than 80% of the purchase price of the house, you have to pay for an insurance policy that protects the bank in the event that you default on the loan.\n\nYou can do 100% financing with conventional or non-conventional financing.  If your credit is good, your best bet may be the 100% conventional.  The down payment and credit rating is what determines your PMI.  With great credit, your PMI may be inexpensive.\n\nIf you have less than great credit your PMI may be quite expensive.  Your best bet may be an 80/20 to eliminate the need for PMI.\n\nIf your credit is bad, you may be better to do the loan non-conventionally with 100% financing.  Non-conventional loans have no PMI but higher interest rates.\n\nYour best bet is to talk to a mortgage broker.  Ask him to price the loan conventionally and non-conventionally.  Then ask him to price it with 100% and 80/20.  Go with the loan that makes sense to you.  Keep in mind that your PMI payment is not tax deductable so you lose that potential deduction.  \n\nYour mortgage broker will be able to put these scenarios together for you without a problem.  Also check out my mortgage blog to learn more about homebuying and what mortgage brokers do:  http://explaintome.blogspot.com\n\nGood luck.
358549
VA loans are basically just normal loans. They must be obtained by a mortgage company that deals with VA loans, but most, if not all, do.\n\nThere are benefits and negatives to VA loans:\n\nBecause they are secured by VA, there is generally no PMI insurance required even with no money down loans.\n\nYou don't need to put money down, and all the loan fees can be rolled into the loan.\n\nThe interest rate is the same as any other loan, since it is basically a regular loan with VA backing.\n\nThe appraisal must be done by a VA inspector, and generally, the appraisals usually come in much lower than a non-VA appraisal. They are more picky, and don't work very hard to get a higher appraisal.\n\nIf you want more specific information, you can contact your VA office and they can lead you in the right direction.
632445
find out all the details about FHA. FHA loans may sound good, but when you go to sell your house you will find they are not so great. they do not base your payoff on your balance, they base it on market value. check into it. there are more options for first time home buyers or buyers with no money down. a house is a long term investment so you must think long term. and what sounds good now may not sound good later. check out all your options before making a decision.
617300
Rabbi,\n\nI'd be glad to send you a lot of information about reverse mortgages but here are the basics.  It's an FHA loan for only people 62 years or older.  You can get out 45%-75% of your home value depending on your age.  The older you are the more money you receive.  It's similar to a home equity loan but the biggest difference is that with a Reverse there are no monthly payments to make.  The lender is willing to wait 20-30 years for the borrower to either pass away or move from their home in order to get paid back.  It's much safer than a home equity loan because there are no monthly payments to add on or fear of foreclosure because payments have been missed.  You can receive your money in a lump sum, monthly payments, a line of credit (with a growth rate of about 7% right now), or a combination of all three.  There are no income or credit requirements.  You are still the owner of your home and remain on title just like you would with any other kind of loan.\n\nThe only drawback to it is that you don't leave 100% of your equity to your heirs.\n\nIf you have a current mortgage a reverse can pay off your current mortgage and you receive the remaining money you qualify for thus eliminating your monthly mortgage payment on the current loan.\n\nI hope that answers the basics.  I specialize in reverse mortgages and would be happy to send you an information packet we have.  You should also check out these websites.\n\nwww.reversemortgage.org\nwww.aarp.com\nwww.griffinloans.com\n\nOur company is the largest originator of reverse mortgages in the Southwest and we are licensed in almost every state.  I'd be more than happy to help you with any questions you may have.  Feel free to respond back to this post or you can email me direct at bburns@griffinloans.com
671118
Determining if consolidation loans are the right decision for you requires serious thought. As with any decision of magnitude, carefully weighing the pros and cons is important.\n\nLet’s explore the pros and cons of this type of debt solution.\n\nPros:\n\nOne payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.\n\nReduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates.\n\nLower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.\n\nOnly one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.\n\nTax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off. \n\n\nSounds great, doesn’t it? Before you run out and get a debt consolidation loan, let’s look at the other side of the picture – the cons.\n\nCons:\n\nEasy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place.\n\nLonger time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt.\n\nSpend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.\n\nYou can lose everything: Consolidation loans are secured loans. If you didn’t pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home. \n\nAs you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you.
593907
Mahit Madaan is giving you part of the truth.  More of the truth is that a Home Equity loan is a 2nd mortgage at a higher sometimes much higher interest rate.  This will depend on your credit and credit score of course.  You will end up with TWO mortgage payments, one at a lower rate and one at a higher rate.  The qualifications for a 2nd mortgage are a bit more steep because with a 2nd mortgage, you become a higher risk.  Many times two mortgage payments may stress your monthly finances in ways that you may not notice until after you close.  Conversely, if you refinance your first mortgage, you will only have ONE mortgage payment.  Obviously, the rate will be slightly higher than what you have at the moment, but you will avoid the sometimes MUCH higher interest rate on the 2nd mortgage, and instead of amortizing the 2nd mortgage for the usual 15 year period, the entire mortgage can be amortized over 30 years or 40 years, thus lowering the monthly payment.  I am telling you this because I have refinanced many, many customers who wanted and needed to consolidate 1st and 2nd mortgages to lower their monthly mortgage payments.  If you want to discuss this further, by all means, please contact me at wwi_2@yahoo.com
35081
A conventional loan requires a 20% downpayment.  An FHA loan has a low downpayment, but has a higher rate to cover the insurance on the loan.  Unlike PMI(private mortgage insurance) FHA insurance can not be cancelled when you reach a certain LTV(loan to value) ratio.