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Posted on: 06th May, 2012 10:25 am
i'm wondering if i can get some help from the mortgage stars here.

house price : $800,000.
max downpayment possible : 15%
plan to live in the house : 10 years

unfortunately i do not have a 20% downpayment right now.

the maximum downpayment i can put down is $120000. so that's around 15% down. the lowest downpayment i need to put down for the fha is (800-729) or 8.75% (71,000/800,000).

from what i've heard the upfront and monthly pmi's are not variable based on downpayment. if i'm not wrong, it is around 1.2% monthly pmi for both cases and an 1.75% upfront pmi. so if i can get the loan at any downpayment, i should opt for the lower downpayment i guess, since the differential is not that high.

here are my questions :

1. also, even though i'm at 15% max downpayment now, i can get to 20% downpayment in the next 6 months. i heard that with the fha loan, in 6 months i can streamline refinance and get the monthly pmi down to 0.5% from 1.2%. is that true or does streamline refinancing have some other rules?
2. what's the best strategy for my case? should i go for the lowest downpayment possible, at 8.75% and then refinance in 6 months, perhaps with a streamline refinance or a 20% down conventional?
3. any other options i should look at in terms of financing this loan?

thanks folks.
Hi nathan,

As far as I know, 20% down payment is required in case of a conventional loan. FHA loans don't require such high down payments. FHA loans are even available at a down payment of 3.5% - 5%. So, before taking any further steps, I will suggest you to contact other local FHA lenders and check out what type of down payment they would require in order to approve you for a loan.
Posted on: 06th May, 2012 07:36 pm
If you are buying an awesome deal as well, then also the points and fees during closing should be $2000 at minimum. Most of the new real estate investors don't understand that they have to put some money out of their pockets initially and they won't get the cash instantly.

Posted on: 08th May, 2012 01:58 am
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