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
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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 |
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[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 |
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