You might want to consider a conventional loan rather than an FHA loan. There are conventional loans that allow a borrower to only put 3% down instead of the 3.5% down that is required by FHA. Mortgage insurance is also more expensive on a FHA loan than on conventional . Lastly, FHA has just changed their guidelines. No longer is mortgage insurance removed when a loan reaches 78% loan to value. Mortgage insurance will remain on the loan forever. The only way to remove it is to refinace the property at some point in time. With conventional loans, mortgage insurance can be removed once there is a certain amount of equity in the property. The equity position required can vary between lenders but it's usually between 75 to 80% loan to value.
Get with a lender and let them walk you through the 101 basics of getting a home loan and what options you have based on your credit and cash position.
Conventional borrowers can elect to pay their own taxes and insurance rather than having the lender factor it into the loan- if they have a large enough down payment.
Typically FHA borrowers are required to have the lender to set up an escrow impound to pay the taxes and insurance on the borrowers behalf - this "all inclusive" loan payment is described by the acronym PITI - which stands for Principal, Interest,Taxes, and Insurance.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Every purchase will be different depending on your final purchase price, down payment, interest rate, etc. Any references to monthly payments will always be an estimate until you know the final numbers for your purchase.
The Bank holds the money, pays the bills as they come due, and sends you a monthly statement showing your BALANCES in your Impound Accounts.
The Banks do not want you to lose your house because you didn't pay those bills; and it happens; a lot!
If your Lender does not insist; I suggest that you do.