Home Buying in Brooklyn>Question Details

Azad, Home Buyer in Brooklyn, NY

For a first time home buyer, is there any reason to avoid FHA loan vs getting a standard loan from the banks?

Asked by Azad, Brooklyn, NY Sun Jan 13, 2013

Help the community by answering this question:


It's really about which loan program best fits you. If you are very limited with money you can use towards down payment and/or closing costs, maybe FHA is the way to go. If you have a high enough credit score, and can come up with a 5% down payment and have some additional money for at least part of your closing costs, maybe you'll be better for for a Conventional loan, which almost always results in a lower monthly payment.

The best thing to do is to allow a Loan Officer to review your credit and financial documents. This is the best way any Loan Officer can advise you of your options.

If you're in need of someone, feel free to contact me. Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
1 vote Thank Flag Link Sun Jan 13, 2013

Short answer: yes. But the best answer is: it depends. I have extensive experience helping first time home buyers become successful homeowners. There a host of factors to consider when choosing a mortgage that go way beyond the typical four c's: cash, collateral, credit and capacity. FHA loans offer many advantages over conventional loans in terms of credit, down payment and flexible underwriting. But disadvantages include the upfront funding fee and the monthly mortgage insurance required for government insurance on these laons. It's best to consult with a licensed and expierenced mortgage orignator to discuss the pros and cons of the various mortgages based on your specific needs and goals. I can provide you with a complimentary preapproval that will identify the best mortgage to help you realize your goal of homeownership. I can be reached at 917.699.0183.

Michael Denniston
Senior Mortgage Originator
NMLS License #24076
Cliffco Mortgage Bankers
0 votes Thank Flag Link Thu Jan 17, 2013
One reason to avoid FHA may be having to meet FHA standards. Consult your lender.
0 votes Thank Flag Link Tue Jan 15, 2013
If you can put down 20% towards the purchase you can get a conventional loan and avoid paying PMI which is 1.25% of the loan amount
0 votes Thank Flag Link Tue Jan 15, 2013
Dear Azad:

An FHA loan has stricter guidelines with regard to the appraisal. If the property condition is not up to FHA standards, they may insist on repairs and simply refuse to lend. If you can qualify conventionally you will not have to worry about this problem. The main reasons why buyers go FHA is because you can qualify with a lower credit score. FHA will also allow you to borrow a little more based on your debt to income ratio. Still, if you credit is good you are probably better off just going conventional. If I can be of further assistance or if you need help locating a property too purchase, contact me direct. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Jan 14, 2013
Your loan officer can better guide you in the direction that is best for you, therefore consider a consultation; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Mon Jan 14, 2013
Good morning Azad,

This is something you should talk over with your mortgage broker (Who is fantastic). Both programs are good depending on your needs, but at the same time, there are some properties that are not FHA approved. I myself have had customers who wanted to buy condos I had listed but couldn't because the building wasn't FHA approved.

Again, you need to chew off the ear of your morgage broker (who is fantastic). He will know all the answers right off hand or call the amazing Broker you are working with. I hear is is a seasoned professional.

Luke Constantino
Douglas Elliman NYC
M: (212) 300-3919
F: (917) 369-2690
325 Court Street, Brooklyn, NY 11231
0 votes Thank Flag Link Mon Jan 14, 2013
There are many organizations that can assist you in attending First Time Homebuyers Workshops and assist you in directing you and helping you quailfy for the various programs in neffect and the new programs as they become available... They are C.A.M.B.A. , NHS ( they have offices in every Borough) and many others. Ask the ones mantioned and they can direct you to thse in your local communities....... Gone luck in your search... George
0 votes Thank Flag Link Sun Jan 13, 2013
I have particitated in many First Time Home Buyer Workshops and have discovered that there are so many programs available that it really depends on the individual and where they are in their lives. I recommend that you attend as many worksops as posssible and learn how to get into position to purchase your new home. The programms differ because they depend on your participation and commitment to do all that is available to get to your goal... Good luck in your search.. George
0 votes Thank Flag Link Sun Jan 13, 2013
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