Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So the rule is since I did a short sale previously I have to wait 4 yrs after my short sale if I have less than 20% down (which is the case). However, I can buy now and do FHA. With the new FHA mip for the life of the loan and increased PMI, that is adding about $400 to my monthly payments. I can afford it but, should I do it? If I wait until March, I can do a conventional loan with 10% down. But nobody knows what he interest rates will be by then. 6%, 7%, more?
If the fed hasn't even tapered anything yet and the rates increased so much already with just talking about it, what happens when they actually start doing it in Sept?
If I could answer that question, I'd be so RICH! But I can't. Personally, I hope for the best but prepare for the worst. Wells and other large investors haven't yet approved a 5% coupon, but we are close. My personal opinion is that we will be in the 5%s next Spring.
BUT: You can do 5% down Conventional, and with some homes, 3%. Or find a zero-down USDA property. Why not jump on that?
Unless you really like that particular house, you really should just wait....I think the govt is trying to faze out the FHA loan with its high and perm MIP
I would wait for sure. Nobody knows what's going to happen to rates next year, but going with the set fha pmi for a life will be with you no matter what... Don't put yourself in the situation when you will have to think about short sale again.
Still don't think you should wait. Negotiate seller-paid taxes/insurance/closing costs, put 5% down, Conventional Mortgage Insurance will likely be less than FHA, and will expire, and rates will likely be 1-1.5% higher in the Spring.
I think the govt is trying to faze out the FHA loan with its high and perm MIP
They're not trying to phase it out, they're tailoring the program to a more marginal buyer and building in greater risk premiums to offset this.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
