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Take a new Look at FHA financing V Conventional Financing

By
Mortgage and Lending with Northern Mortgage

                     Take a new Look at FHA Financing Side by Side compairson FHA V Conventional

There are lots of reasons to ask for an FHA loan instead of taking a Conventional or an expensive and risky Sub-Prime mortgage loan. Why not take advantage of the many benefits and protection thah only come with FHA:

Easier to Qualify - Because the Federal Housing Administration (FHA) insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so it's easier for you to qualify.

Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

Low Down payment - We have a low 3% down payment, and that money can come from a family member, employer or charitable organization. Other loans don't allow this.

Costs Less - Many times, FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types. 

FHA Loan Limits - Have been Raised considerable.   Check your local county $567,500 King & Pierce counties

Check out the side by side - comparison Of  FHA  to Conventional  

   First for conforming rates.                   Second for Jumbo priced homes.

 Then visit my blog page and read article - Addressing Fear of FHA Financing

Take a new look at FHA financing

[Home purchased of $250,000 minimum down - minimum closing cost]

30 year fixed loan -owner occupied - 1% origination - credit score 640

  

FHA FINANCING

CONVENTIONAL

  

Min. Down

3% ($7,500)

5% (12,500)

Interest rate 5/20/08

5.75% APR 5.88%

5.75% APR 5.90%

Monthly Mtg. Ins.

$101

$190

Up Front MI

1.5% financed in ($1212)

None needed at this time

Credit score cost add  to closing

 620 score or better                   (0) 

                             

620 -740 score add .50% - 2.50% at closing     ($1187)

Base loan

$242,500.

$237,500

Loan amount with MI

$243,712

$237,500

Monthly payment/ w MI

$1523.

$1575

Closing Costs

$5245 + pre-paid

$7162 + pre-paid

Total cost to close

$12,745 approx + tax &ins

$19,662 Approx + tax &ins

  

  

  

  

  

  

[Home Purchase price $560,000 Minimum Down - Minimum Closing cost]

30 year fixed loan - owner occupied - 1% origination - credit score 680

Minimum down

3% $16,800

10% $56,000

Interest Rate 5/20/08

6.375% APR 6.5%

7% APR 7.22%

Monthly Mtg. Ins.

$226

$235

Up front MI

$8148 add to loan

$0

Credit score cost           

$0

620-740 + .50% - 2.50% add to closing  $2,520

Base loan

$543,200

$504,000

Loan Amount

$551,348

$504,000

Monthly payment w MI

$3439.

               $3614.

Closing cost

$5,500 + pre-paid

$11,400 + pre-paid

Total cost to Close

$22,200 + tax & ins

$67,400 + tax & ins

  

  

  

  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

 

 

Ryan Schmitz
Micoley & Company - Green Bay, WI

Informative article, I like the examples.

May 20, 2008 09:59 AM