Posted on: 21st Feb, 2011 03:33 pm
My wife and I are planning to buy a house. Since I'm already retired and just have a part time job, we can only borrow a maximum of $100,000. I asked my son and daughter-in-law to cosign and they agreed, so we can get a higher loan. The bank loan officer said that we can only be in FHA program since my son and daughter-in-law will not be living with us. On top of the monthly mortgage, we need to pay an extra $100.00 each month, even though we are planning to put a down payment of more than 20%. I thought FHA programs are for only those people who can't afford the 20% down?
Please help...thanks
Please help...thanks
Welcome reyti,
In case of FHA loans, you can pay a down payment of 3.5% - 5%. However, you will be liable for paying mortgage insurance premium (MIP). As far as I know, the MIP is irrespective of the down payment that you pay to the lender.
In case of FHA loans, you can pay a down payment of 3.5% - 5%. However, you will be liable for paying mortgage insurance premium (MIP). As far as I know, the MIP is irrespective of the down payment that you pay to the lender.
my question was, do i really need to pay the extra $ each month just because my son and daughter-in-law are my cosigners? That was the bank loan officer told us, we need to pay for that extra $100.00 each month for one reason only, my son and daughter-in-law are the cosigners.