Home Buying in Brockton>Question Details

Jadreamin1012, Home Buyer in Brockton, MA

Stupid question

Asked by Jadreamin1012, Brockton, MA Thu Oct 4, 2012

with an FHA 203 do you have to put down 3.5% of the sale price or total mortgaged?

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7
This is best answered by some one who knows both your personal situation and property, and who also knows 203 loans.
If your current lender can't help you, find one who can.


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1 vote Thank Flag Link Sat Oct 6, 2012
Thank you. All answers have been helpful. I get different pieces of info.
Flag Sat Oct 6, 2012
JAdreamin,

If you are getting a renovation loan your limiting factor is your total loan amount not the amount of Renovation. You will be comfortable with the payment you will be comfortable with if that magic number is $235,000 you could find a house for $100,000 and put in $135,000 in renovation.

Don;t let anyone tell you the amount of Renovation is capped at $35,000 that is simply not true.
1 vote Thank Flag Link Thu Oct 4, 2012
The question is a little confusing, FHA financing can be a little confusing. Let me see if I can help.

FHA has a base loan amount which is the purchase price - your 3.5% down payment.

Then you need to figure out how wou intend to pay the upfront Mortgage Insurance Premium most folks finance that into their loan amount (add the Up Front MIP to the base loan amount) that becomes what is known as your total loan amount. You can opt to pay the UFMIP in cash which would make your base loan amount and total loan amount the same amount.

If you are obtaining an fha 203K loan. Including funds for Renovation it get's alittle more complicated but the base and total loan amount still works the same except the Purchase price is aquistion costs (Purchase Price + Cost of Repairs).

I hope this helps....

P.S. No such thing as a stupid question.
1 vote Thank Flag Link Thu Oct 4, 2012
thank you
Flag Thu Oct 4, 2012
3.5 % of the purchase price plus the renovation cost.
1 vote Thank Flag Link Thu Oct 4, 2012
thank you
Flag Thu Oct 4, 2012
your downpayment percentage is based on the purchase price. However, your mortgage amount will be the sales price minus whatever you put down. Be sure to work with your buyer's agent he-she will be able to assist you in your purchase and it does not cost you anything to be represented; if you do not have one talk to a few knowledgeable agents and choose one, again of no cost to you. Good luck
1 vote Thank Flag Link Thu Oct 4, 2012
No such thing as a stupid question! The downpayment is a percentage of the total purchase price Best of luck with your purchase...Jim
1 vote Thank Flag Link Thu Oct 4, 2012
Thank you all for responding.

The $35,000 will only add a little more than $1200 to the down payment but iit will make a difference as to how much I can and will pay for a house.
0 votes Thank Flag Link Thu Oct 4, 2012
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