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[GhettoDogAllStars]

Originally Posted by over the mountain

Thanks. what is a FHA loan? i assume fed home application loan?

So FHA allowed you to only put down a 3.5% down payment?

How do you apply or qualify for a FHA loan? i can google this but id like to know what steps you took if you get the chance.

What was your offered mortgage rate with buying points?

FHA = Federal Housing Administration

The FHA loan is offered/backed by the government (in some way) and they usually have lower rates than conventional loans. The government doesn't own the loan, but they support the transaction somehow to make rates lower.

FHA loans also only require a minimum of 3.5% of the sales price as a down payment. You can pay more, but it's not required. Another caveat is that the home *must* appraise for what you are offering or higher. FHA will not loan you more money than the house is worth. This can actually help you in negotiations with the seller regarding sales price, because once an FHA appraisal is done, it's good for 6 months and the seller cannot sell to any FHA buyers for more than what it appraised for. When I bought my house, this was explained to the seller and helped me get the sales price down a bit.

There are certain restrictions, like income, but I don't know what they are really. Your best bet is to see a mortgage broker who can process FHA loans and tell them you're interested in an FHA loan. That's what I did, and I filled out an application and the guy ran my credit and said I met the qualifications. This should be the next/first thing you do, IMO.

I'm sure there are others here that know more about it and can explain it better.

I might be off-base here, but I think who you hire as your mortgage broker is pretty important. My mother has worked in the industry for over 30 years, so she referred me to somebody she knew. My mortgage broker was really professional and helped me get the best rate and make the best use of the closing costs paid by the seller. I haven't seen the bad side, but I have seen the good side and I can imagine that having a bad mortgage broker would make things more difficult and possibly put you into a financial bind.

The rate you get will depend on the day you close, as it changes every day (I think), so take it with a grain of salt. My initial rate was 5.125% with no points. The seller paid $4.5K in closing costs, so I applied some to buy down my rate (0.3 points to make it 4.875%). In concept I don't really like the idea of buying points, since it takes cash up-front to do -- which could be invested at a higher return, or used to pay down your principal. However, I was in the position where the seller was willing to pay more than the actual closing costs, which were about $3.3K I think. So, the remaining $1200 was used to buy 0.3 points -- otherwise that money would have been "left on the table" and the seller would have been able to keep it.

I'm not an expert on finance or real-estate. I have only purchased one home. Take this information for what you will. I'm sure somebody here knows more and can help with more details.

[mredskins]

Originally Posted by GhettoDogAllStars

FHA = Federal Housing Administration

The FHA loan is offered/backed by the government (in some way) and they usually have lower rates than conventional loans. The government doesn't own the loan, but they support the transaction somehow to make rates lower.

FHA loans also only require a minimum of 3.5% of the sales price as a down payment. You can pay more, but it's not required. Another caveat is that the home *must* appraise for what you are offering or higher. FHA will not loan you more money than the house is worth. This can actually help you in negotiations with the seller regarding sales price, because once an FHA appraisal is done, it's good for 6 months and the seller cannot sell to any FHA buyers for more than what it appraised for. When I bought my house, this was explained to the seller and helped me get the sales price down a bit.

There are certain restrictions, like income, but I don't know what they are really. Your best bet is to see a mortgage broker who can process FHA loans and tell them you're interested in an FHA loan. That's what I did, and I filled out an application and the guy ran my credit and said I met the qualifications. This should be the next/first thing you do, IMO.

I'm sure there are others here that know more about it and can explain it better.

I might be off-base here, but I think who you hire as your mortgage broker is pretty important. My mother has worked in the industry for over 30 years, so she referred me to somebody she knew. My mortgage broker was really professional and helped me get the best rate and make the best use of the closing costs paid by the seller. I haven't seen the bad side, but I have seen the good side and I can imagine that having a bad mortgage broker would make things more difficult and possibly put you into a financial bind.

The rate you get will depend on the day you close, as it changes every day (I think), so take it with a grain of salt. My initial rate was 5.125% with no points. The seller paid $4.5K in closing costs, so I applied some to buy down my rate (0.3 points to make it 4.875%). In concept I don't really like the idea of buying points, since it takes cash up-front to do -- which could be invested at a higher return, or used to pay down your principal. However, I was in the position where the seller was willing to pay more than the actual closing costs, which were about $3.3K I think. So, the remaining $1200 was used to buy 0.3 points -- otherwise that money would have been "left on the table" and the seller would have been able to keep it.

I'm not an expert on finance or real-estate. I have only purchased one home. Take this information for what you will. I'm sure somebody here knows more and can help with more details.

Agreed! I have used these guys twice and they are great! My friends have used them as well. They have even come to my closings to ensure it runs smooth.
Home - Tenacity Mortgage

Though next year when I move I may go down the Navy Federal road but we will see.

[over the mountain]

Originally Posted by mredskins

you can still get no money down loans, I was just cursing Navy Fed and saw they offer them.
Navy Federal: Mortgage Rates

But you said you got $50k saved up so you should be good.

Yeah i heard this from a few people. thanks for the link. im going to read up on them tonight.

GM - yes please PM me his contact info. right now my goal for the next month is to secure the best possible loan i can get. so please when you get a chance PM me his contact info and I will call him.

ghetto dog - thanks for all that info. it helps me know what i am getting into. with my mortgage rates offers so far, no one has been willing to count the 15-20k i make on the side as an hourly contract employee. so ive been getting loans based off 40k a year. so maybe that will actually help with qualifying for a FHA loan.

thanks everyone. i am going to follow the leads you all gave me and probably come back with more questions. i feel like i should sit down with a real estate agent. so far ive just met with mortgage lenders and am not getting any questions, just providing them with info then getting emailed a crappy offer a week later.

[Beemnseven]

If anyone needs a house sold or wants to buy a house in the Tidewater/Hampton Roads area, let me know. This is my seventh year in the business.

[GMScud]

OTM- sent you his info. He's got a lot of time in the industry. When my wife and I buy a home (hopefully early 2011), he will definitely be originating our loan. He can do FHA or convetional. I just exchanged texts with him and let him know you may be contacting him. Good luck! Feel free to PM me anytime.

[mredskins]

Originally Posted by [B

over the mountain;709585]Yeah i heard this from a few people. thanks for the link. im going to read up on them tonight. [/B]

GM - yes please PM me his contact info. right now my goal for the next month is to secure the best possible loan i can get. so please when you get a chance PM me his contact info and I will call him.

ghetto dog - thanks for all that info. it helps me know what i am getting into. with my mortgage rates offers so far, no one has been willing to count the 15-20k i make on the side as an hourly contract employee. so ive been getting loans based off 40k a year. so maybe that will actually help with qualifying for a FHA loan.

thanks everyone. i am going to follow the leads you all gave me and probably come back with more questions. i feel like i should sit down with a real estate agent. so far ive just met with mortgage lenders and am not getting any questions, just providing them with info then getting emailed a crappy offer a week later.

Here is my guys email.

patgannon@tenacitygroup.com

Pat Gannon is his name really understands the B-more market. Great guy.

[tryfuhl]

nvm.