Does an FHA loan sound like a good option for us?

Posted on Sep 9, 2012 in FHA Information

Question by : Does an FHA loan sound like a good option for us?
We’re trying to purchase our “forever” home. Like all of us we want the lowest payment possible for the next 30 years (in hopes of paying off early!).
The property location qualifies as an FHA approved location.
Rates in our area are starting to climb. Talking to Chase today our current rate is 5.3%. FHA loans are lower.
We plan to put down at least 20% on $ 185K-$ 195K home.
We are a household that brings in around $ 50K a year and has excellent credit.
I’m not sure where mortgage insurance comes into play here. With a 20% downpayment would we still need it?
Anyone have any good and bad points to FHA loans?

Best answer:

Answer by huzaifa
uh huh

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4avg.rating 21 votes.

5 Comments

  1. You do not earn enough money for a house that expensive. You can only pay on a loan of 120-130k. Don’t you plan to eat?

  2. With an FHA loan, you will pay pmi for a minimum of 5 years… even if you put down 20% or more — this is the biggest downfall of FHA. I would look for a conventional mortgage since you can put down 20%.

  3. Chase had very high fees and higher mortgage rates when I checked into them in my area. I would go to a credit union and a small bank in the area and see what they can do for you. Definitely putting the 20% down will get you into more home with lower fees. If you have not owned a home in the last 3 years there might be a state program that assists borrowers. My state, for instance, gives, state tax credits for first time borrowers.

  4. What if I need to know more – how can I find you?

  5. Good article. Good blog. Good post about fha loans.