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phamdv · Joined: 17 Apr 2009 Posts: 1 1.66 Dollars($)

I lived in California. I understand that FHA loan is for firsttime buyer with low down payment. But am thinking of putting down 20% down payment with FHA loan because:
1- I do not want to pay PMI
2- I can get a better rate than conventional loan (BOA). one point different given by a FHA loan officer( countrywide).
3-BOA has no fee but the different in interest will add
up more than the saving on closing cost.
Please, give me your opinion. I looking for a loan now for my townhous. Thanks

Garysnober · Joined: 17 Mar 2009 Posts: 450 15.29 Dollars($)

Hi, I think the min you can put down is 3% up to a maximum of 20% down so i see no problem with you putting down 20%. FHA rates are just as good as conventional loan rate right now.

gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

Hi phamdv ,

Welcome to our forum.

Here i would like to advice that you have not need to pay PMI because your making 20 % Down payment to them. As Garysnober says it will 3% down & 20 % up.

You can get better rates than conventional loan but its also depending on your situation & location. As you say you in California there i think you can get better rates for FHA ( Federal Housing Administration ).

Yes, BOA ( Bank of America ) is not charging for fees but they will add
up more than the saving on closing cost.

I hope you will satisfied by my answer.

Thanks & Regards.

Samantha · Posted: Sat Apr 18, 2009 8:33 am Post subject:

Well phamdv, I don't see a problem if you can make a 20% down payment on your home and avoid paying the PMI or Private mortgage insurance. However, I'd surely mention here that the PMI compensates for the payment in case you default on your mortgage. The rest is obviously going to be your own decision.

May god bless you.

Samantha

gmakerley · Posted: Mon Apr 20, 2009 7:21 am Post subject:

go with the fha loan, put your 20% down and don't be confused by misleading opinions.

donnabagley · Posted: Wed Apr 22, 2009 7:27 pm Post subject:

First of all there is no PMI on an fha loan! What are you hoping to accomplish by putting 20% down?

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

For FHA minmum downpayment required is 3.5% and with and upfront MIP of 1.75%.

Best option would be to go with 20% down, will keep yoru monthly payments low.

gmakerley · Posted: Thu Apr 23, 2009 6:06 am Post subject:

confusion reigns. private mortgage insurance is provided by companies on conventional loans with an ltv over 80%.

mip is what fha loans carry - mortgage insurance premium. there is an upfront charge of 1.75% of the loan amount - typically added to the loan amount and financed; and there are monthly mip premiums based on .55% of the loan amount.

so when someone says that fha loans do not have pmi, that is correct inasmuch as pmi is only on non-government insured loans.

Guest

can you have the mip on an fha loan removed at some point? or does it stay for the full life of the debt? thanks

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

One you pay 20% of the principal, you can contact the lender and ask them to remove the PM or MIP.

Guest

It does not matter if you put 20% or 3% down you are still going to pay for PMI FHA wont back your loan with out it.

eric1 · Posted: Sat Sep 19, 2009 8:20 am Post subject:

Which is exactly why I do not even look at FHA for borrowers who have 20% down.

leeelliot61 · Joined: 13 Sep 2009 Posts: 188 0.01 Dollars($)

Additional down payment will not help you in FHA loan. you can get lower & attractive interest rates in conventional loan.

MIP is only charged until the loan principal has been paid down by 22 percent

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raymond · Posted: Fri Jan 22, 2010 5:36 pm Post subject:

>>1- I do not want to pay PMI

FHA mortgages always include Mortgage Insurance, regardless of the amount of the down payment. It will be reduced with a larger down payment, but it'll still be there.

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Can you put 20% down with FHA Loan?