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USDA = 0% down but you need to be in a "rural area"
Wa Bond = 0% down with the down payment in the form of a community second mortgage. The first is either an FHA or conventional.
VA = 0% down but you need to be a veteran
FHA = 3.5% down but the MI factor is 1.75% upfront and 1.35% monthly.($225/month on a $200k loan amount round numbers)
Conventional = 5% down and you can choose how to structure the PMI. One upfront payment, monthly payments or a combination of both.
Condos will have a HOA payment which usually cancels out any svaings. Condos also need to be approved by whatever agency your loan is based on; Fannie/Freddie/FHA etc.
A few smaller banks are offering portfolio stuff that is different from above but they are few and far between. Too much non-saleable mortgage paper in your portfolio gets the regulatory agencies breathing down your neck.................
If I own a rental and want to refinance with an FHA loan and have more than 20% equity in the house do I still need a down payment upon refinancing the loan?
Or do you use that equity toward the Refinance?
The Shop
When refinancing the loan-to value is calculated by the difference \between the current appraised value and the loan amount. On a purchase it is calculated by the difference between the lessor of the sales price or appraised value and the loan amount.
Hope that helps,
Giles
I was looking at your Diagram and noticed that FHA was a lower down Payment.
I was looking for the best refinanced loan at Zero down and was hoping the equity would cover that.
Current appraised value = 170,000 (just had it done last week)
Current amount owed 97,000
So with what you are saying I could refinance Conventional and use part of the equity so that I need no money upfront?
For sure you would use a conventional loan in your case as you are at a 57% LTV.
Mortgage insurance kicks in at +80% LTV on conventional first mortgages................
Townhomes and condo's are impossible to tell apart from looking at them...but rates are higher on condo's and there are way more hoops to jump through on the financing side...Townhomes will avoid that.
VA loans (if you are a veteran...active or reserve...you might be eligible...get your DD214 and have a lender pull your Cert of eligibility from the VA).
If you live in a rural area (and you might be surprised what is considered rural)...look into a USDA rural housing loan. 100% financing, VERY cheap PMI.
Most states (I believe Washington is one of them) will fund 100% financing programs...you'll just have to talk to a local mortgage company/credit union to find out.
Otherwise, FHA loans are EASY to qualify for and only require 3.5% down. The PMI is expensive on them-which stinks-and its on there for the life of the loan-which stinks even more.
Conventional loans require 5% down, and you can structure those loans so that you don't pay any PMI at all.
But if you can't handle the $90 increase in your rent on your your current pay. Then you budget is out of wack. So shouldn't be cutting bills that close.
How much are you saving per month?
Speaking for myself, I'd start networking and let people know that I'm on the hunt for a home. Let people know that you'd be interested in a buyer finance, maybe assume a mortgage, a lease to own, if the conditions were right. Just because you're purchasing a home doesn't mean the bank has to be involved. Plenty of for sell by owners out there.
Pit Row
No reason for me to buy a house, i have no kids. I'm not gonna get into debt to give the government all my hard-earned money after i die. Worry about retirement? My father always says: don't buy a house, you get one when i die. I don't have to worry about my retirement so i just keep on renting and being debt-free for my whole life. I don't get people that go into debt for a car... Might as well burn up your money... The debt system is like the total opposite of freedom.
If i would have kids, things would be the opposite. I can see that parents want to build something for themselves and their kids.
Went and looked at a few model tract homes down the street from my work that are priced over 500k. Fuck these people.
Post a reply to: How many of you rent?