Woot my keys are ready!!!!

[Syrch]

Well went house shopping about a month ago and found a really beautiful 3000 sq ft 5/3 bedroom. Its just 15 minutes from work and the area is growing fast. Everything about the home was a plus. I literally told my real estate agent there was no way she'd find a home for me that day. The last house she showed us there was just no negatives about it and there was just no reason to say no.

Well I went with FHA and was supposed to close today but got the call that it "should" now be the 19th. They explained that since the increased the limit for FHA it has bogged them down. Since they are the only 100% loan right now its just a bottle neck. This is just draining.

All i can do is sit here twiddling my thumbs. Guess i'll just have to have a :beer: when i get home.

Update: SHOULD CLOSE MONDAY!!!!

 

[vi edit]

Didn't get pre-approved?

For me the most stressful part was waiting to hear back on if our offer was accepted and if not, what the counter was.

 

[radioouman]

Were you pre-approved?

 

[Wheezer]

They say the most stressful part of home buying

nah...wait until you actually own it......there are A LOT more stressful parts to home ownership.

 

[Syrch]

yeah fully pre-approved. My credit is high 700's, i've been employed with the same employer for 5 years all of which show steady increase in both income and responsibility, I have a DTI of 5%.

 

[sourceninja]

The worst part about buying a home is realizing you just bought another persons bad choices and problems (unless you built or bought a brand new home)

 

[Syrch]

Originally posted by: sourceninja
The worst part about buying a home is realizing you just bought another persons bad choices and problems (unless you built or bought a brand new home)

Yeah i did, i was going to buy a foreclosure but I ended up with a great deal on a brand new home. I went with that

 

[vi edit]

Originally posted by: sourceninja
The worst part about buying a home is realizing you just bought another persons bad choices and problems (unless you built or bought a brand new home)

Many people get transferred out of state, want a bigger place, ect. If it was foreclosed yeh, that makes sense. But to make a blanket statement like that is just naive.

 

[Aharami]

OP if you have such good credit, why are you going with FHA? I thought FHA is only for people with risky credit?

 

[vi edit]

Originally posted by: Aharami
OP if you have such good credit, why are you going with FHA? I thought FHA is only for people with risky credit?

They are one of the only ones out there now that do 100% financing.

 

[Syrch]

Originally posted by: Aharami
OP if you have such good credit, why are you going with FHA? I thought FHA is only for people with risky credit?

I went with FHA because i just bled my accounts to pay down all my debt. Everytime my loan officer ran my credit (about three times total) my score went up as things showed they were paid or had less debt. With FHA i only have to put 3 percent down were anything else wants 20 percent or a second mortgage. I even asked my bank and they wanted me to do a 30 yr at 5.85 percent and a 20% 20 year fixed at 8 percent. My FHA is going to be a single 30 yr fixed loan at 5.75 percent.

The banks really do not want to do anything with you if you don't have 20 percent to put down.

 

[shocksyde]

Disclaimer: I know nothing about home-buying.

Why in the world would you buy a house if you have no money? That would scare the shit out of me.

 

[Syrch]

Originally posted by: shocksyde
Disclaimer: I know nothing about home-buying.

Why in the world would you buy a house if you have no money? That would scare the shit out of me.

Well thats the blessing in disguise i guess. Since its being delayed two weeks i'll have that much in savings. I've been able to put some in savings already as well as my rebate check. I will have money but lets face it 20 percent of even 100k is a pretty big lump sum of cash.

 

[Blieb]

A tenant that just moved out of my townhouse got an FHA loan. Took over 60 days to close it.

I know that they had piss-poor credit 1 year ago, so I'm not even sure how they qualified.

Anyways, I heard from another guy that loans right now are just taking forever to close.

 

[waggy]

Originally posted by: sourceninja
The worst part about buying a home is realizing you just bought another persons bad choices and problems (unless you built or bought a brand new home)

thats just stupid.

there is nothing wrong with buying a used home. hell many old homes are better built then a good portion of those today.

today to many are building as big and fast as they can. using cheap material and labor. sure the first few years the house looks good but they are falling apart fast.

to say buying anything but a new build is a bad idea shows you have no clue about houses.

 

[waggy]

Originally posted by: Blieb
A tenant that just moved out of my townhouse got an FHA loan. Took over 60 days to close it.

I know that they had piss-poor credit 1 year ago, so I'm not even sure how they qualified.

Anyways, I heard from another guy that loans right now are just taking forever to close.

my sister got a FHA loan with a credit score of below 600. she got a 120k loan wiht ZERO down.

im amazed she is still in the house actually.

 

[Scarpozzi]

I thought it was just stressful making sure I signed my name with my middle initial since that's what was on all 50 pages of the mortgage papers. (I never sign anything with my middle initial)

 

[SuperjetMatt]

my sister got a FHA loan with a credit score of below 600. she got a 120k loan wiht ZERO down.

im amazed she is still in the house actually.

This is good news for the economy.



Bwhahahaa.

I thought it was just stressful making sure I signed my name with my middle initial since that's what was on all 50 pages of the mortgage papers. (I never sign anything with my middle initial)

I recently sold my old house. My wife signed without middle initial on some documents, and the lender made her correct it AFTER closing, before they would fund.
I think banks have gotten pretty nervous.

That said, I made 19k on a manufactured home I was in for only 2 years.

 

[Scarpozzi]

I just finished reading all previous posts. This is actually a good time to buy. With the interest rates sure to go up as the economy tanks, you're doing good getting in under 6%. Even if the date is delayed you should be locked at that APR for 45 days.

Just make sure you don't make any mistakes like taking out a second mortgage to do "improvements" or anything else... You might find that your home's value is slow to increase or that it actually decreases slightly in the next 5 years.....you never know. Just work hard to get to the 20% equity point so you'll be able to save that stupid extra insurance they tack on your house.

I refinanced last month and locked in at 5.25% on a 10 year. It's going to feel good to have my place paid off. (I'm shooting for 7 years)

 

[RightIsWrong]

Remember to refinance once you hit your 20% equity in the home (either from paying it down or appreciation).

FHA is great for a low-no down payment option but they still charge you for MMI (their version of PMI) for the first 60 months of the loan until you get to 78% with no cancellation option for appreciation and an upfront fee for the same MMI. If you get a regular conventional, once you have the 20% equity, you are no longer required to carry it and can ask for it to be removed under the Fair Housing Act of 1978.

http://www.bankrate.com/brm/news/DrDon/20040928a1.asp

 

[CPA]

Originally posted by: Syrch

Originally posted by: Aharami
OP if you have such good credit, why are you going with FHA? I thought FHA is only for people with risky credit?

I went with FHA because i just bled my accounts to pay down all my debt. Everytime my loan officer ran my credit (about three times total) my score went up as things showed they were paid or had less debt. With FHA i only have to put 3 percent down were anything else wants 20 percent or a second mortgage. I even asked my bank and they wanted me to do a 30 yr at 5.85 percent and a 20% 20 year fixed at 8 percent. My FHA is going to be a single 30 yr fixed loan at 5.75 percent.

The banks really do not want to do anything with you if you don't have 20 percent to put down.

Won't you have to pay PMI with the FHA. The 80/20 would have eliminated that, plus you could have waived escrow.

 

[waggy]

Originally posted by: RightIsWrong
Remember to refinance once you hit your 20% equity in the home (either from paying it down or appreciation).

FHA is great for a low-no down payment option but they still charge you for MMI (their version of PMI) for the first 60 months of the loan until you get to 78% with no cancellation option for appreciation and an upfront fee for the same MMI. If you get a regular conventional, once you have the 20% equity, you are no longer required to carry it and can ask for it to be removed under the Fair Housing Act of 1978.

http://www.bankrate.com/brm/news/DrDon/20040928a1.asp

why would he refinance if he does not have the MMI? hw would start paying right up front (wich he has not said he has) etc.

 

[Syrch]

I plan on adding $620 a month to my payment starting in august. This will get me to the 78% rather quickly and should pay it off in roughly 14 years saving me $160k in interest. This is the plan and i'll just have to wait to see how much life gets in the way of that.

 

[Vic]

FHA underwriting takes forever these days. Just the way it is. Believe it or not, the current 2-3 week turntimes are an improvement. It was running 4-6 weeks just a couple of months ago.

There are no 80/20 loans right now. Zip. Zero. Nada. Forget about it. Nor would one make sense now that MI is currently tax-deductible.

All FHA loans have 1.5% UFMIP. All FHA loans with a term longer than 15 years have a monthly MIP of 0.5% as well for a minimum of 5 years.

OP: if your credit/DTI is like how you describe, you are certain to be approved unless there is something wrong with the property. With that very low DTI and intentions of paying extra principal, I recommend switching to a 15 year term to save on the monthly MIP.

About the comments with FHA, low down, and credit score... it should IMO be kept in mind that FHA pre-dates the FICO score by many decades. They use a traditional credit rating system based on actual payment history as opposed to a theoretical scoring model. It tends to be more favorable towards credit derogs that happen more than a year or 2 ago, while much harsher towards recent derogs. It is also lenient towards some types of negatives, like medical collections for example, while extremely harsh on others (a single mortgage late in the last 12 months is usually the kiss of death). To those unfamiliar with it, this might give the impression that FHA has loose credit underwriting guidelines, but it definitely does not.
Another thing to keep in mind is that FHA is not a lender. They underwrite the mortgage insurance. And even though they are part of HUD, they don't use a single dime of taxpayer dollars.

 

[Syrch]

Originally posted by: Vic
FHA underwriting takes forever these days. Just the way it is. Believe it or not, the current 2-3 week turntimes are an improvement. It was running 4-6 weeks just a couple of months ago.

There are no 80/20 loans right now. Zip. Zero. Nada. Forget about it. Nor would one make sense now that MI is currently tax-deductible.

All FHA loans have 1.5% UFMIP. All FHA loans with a term longer than 15 years have a monthly MIP of 0.5% as well for a minimum of 5 years.

OP: if your credit/DTI is like how you describe, you are certain to be approved unless there is something wrong with the property. With that very low DTI and intentions of paying extra principal, I recommend switching to a 15 year term to save on the monthly MIP.

About the comments with FHA, low down, and credit score... it should IMO be kept in mind that FHA pre-dates the FICO score by many decades. They use a traditional credit rating system based on actual payment history as opposed to a theoretical scoring model. It tends to be more favorable towards credit derogs that happen more than a year or 2 ago, while much harsher towards recent derogs. It is also lenient towards some types of negatives, like medical collections for example, while extremely harsh on others (a single mortgage late in the last 12 months is usually the kiss of death). To those unfamiliar with it, this might give the impression that FHA has loose credit underwriting guidelines, but it definitely does not.
Another thing to keep in mind is that FHA is not a lender. They underwrite the mortgage insurance. And even though they are part of HUD, they don't use a single dime of taxpayer dollars.

Well my loan was submitted may 23rd, any idea how long i should still be waiting? I have to be out of my apartment the 31st of this month and would really like to be moving in the week before that. I think thats why im starting to get stressed. I would go with the 15 yr loan but i do want to leave room for the unknowns and the 30 year gives me that ability.