Posted on: 26th Feb, 2010 07:05 am
We are buying a house for $144,900 and my wife wants to keep the payment as low as possible. We plan on living in this house for a long time (10-15 yrs or more).
My credit score is 805 and we have 10 grand to put down on the house, plus another 2500 to pay the closing cost with any additional closing cost to be paid by the seller if we add it to the price.
Under an FHA loan, the closing costs seem to come in around 5 grand and we have to pay PMI. Supposedly the PMI is even more on a 95% conventional, but are closing costs lower on a 95% conventional than an FHA loan?
The other thing I've thought of doing is an 80-15-5 piggyback loan. Is that a feasible way to go? What kind of interest rate can I get on the first and second mortgages?
Bottom line... based on my credit score and our situtation, what is the best loan for us? Keeping in mind that the goal is to get our payment down as low as possible but also not paying a high interest rate on the first mortgage, whether it is an FHA or conventional.
Thanks
Dan
My credit score is 805 and we have 10 grand to put down on the house, plus another 2500 to pay the closing cost with any additional closing cost to be paid by the seller if we add it to the price.
Under an FHA loan, the closing costs seem to come in around 5 grand and we have to pay PMI. Supposedly the PMI is even more on a 95% conventional, but are closing costs lower on a 95% conventional than an FHA loan?
The other thing I've thought of doing is an 80-15-5 piggyback loan. Is that a feasible way to go? What kind of interest rate can I get on the first and second mortgages?
Bottom line... based on my credit score and our situtation, what is the best loan for us? Keeping in mind that the goal is to get our payment down as low as possible but also not paying a high interest rate on the first mortgage, whether it is an FHA or conventional.
Thanks
Dan
I think that an FHA LOAN is the best way for you to go in this instance. I also would hope that you have some reserves in case of emergency.
[Link deleted as per forum rules. Thanks.]
[Link deleted as per forum rules. Thanks.]
interest rates for fha and conventional are pretty similar, and closing costs are generally going to be similar, as well. i agree with eric's assessment that you ought to stick with an fha loan.
an 80/15 deal isn't as readily available as it once was; i don't know of anyone offering it at the moment, myself.
an 80/15 deal isn't as readily available as it once was; i don't know of anyone offering it at the moment, myself.
>>what is the best loan for us?
If you or your spouse are a Veteran, a VA guaranteed home loan is the best option. If you're buying in an area that's approved by the USDA, that'd be your second best option. Both offer 0 down with reasonable interest rates and controlled loan fees.
If you or your spouse are a Veteran, a VA guaranteed home loan is the best option. If you're buying in an area that's approved by the USDA, that'd be your second best option. Both offer 0 down with reasonable interest rates and controlled loan fees.
