Question by Jim R: Are there any Mortgage Lenders in Michigan that will do a stated-income or no-doc loan?
Best answer:
Answer by Wayne Z
I believe that those types of loans were outlawed back in 2008.
What do you think? Answer below!
Question by Natasia: What are FHA mortgage loans?
I have an idea of what the loan is but when I was speaking to someone at my bank about it, viagra approved he was very biased about it and gave me open ended questions so i had a hard time trying to understand exactly what he was saying. Although i did gain some knowledge but not enough, malady i still have more questions, does getting an FHA loan make your monthly mortgage payment higher? and anything else i would need to know please give me all the pros and cons, thank you!
Best answer:
Answer by Silly Goose
FHA requires a lower down payment of only 3.5%.
You also need money for closing costs, and some taxes and insurance upfront.
The bank will want to see 2 months of income in savings left over.
Two years of steady employment with tax returns.
You need good credit.
If you have any credit cards, I hope you are paying them in full each month.
Check your reports free once a year at
Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp
Many people have simple mistakes in them such as a misspelling in names.
If you can put 20% down, this avoids PMI.
This can cost thousands a year extra.
It’s not tax deductible, and does not go towards principal or interest.
Please do not get conned by banks.
They will push the max you can afford in a house for their maximum profit.
Never trust banks.
Google: How much house can I afford calculator with debt
Know that the max may not allow you to save for retirement, vacations, etc.
Know better? Leave your own answer in the comments!
Silly Goose answered well.
Please allow me to add the caveat that it is wise not to trust banks, but there is more to it than that. In any business transaction, you should understand the other side and their motivation. You need to understand their incentives; then you can understand what they are trying to do.
Rather than simply mistrust the bank, why not understand their motives so you can have an intelligent conversation rather than an argumentative one?