Page 1 of 2 12 LastLast
Results 1 to 15 of 29
  1. #1
    Rookie
    Points: 13,154, Level: 34
    Level completed: 72%, Points required for next Level: 196
    Overall activity: 5.0%
    Achievements:
    Veteran10000 Experience Points
    shadow's Avatar
    Join Date
    Apr 2006
    Location
    Central Iowa
    Posts
    431
    Points
    13,154
    Level
    34
    Thumbs Up
    Received: 5
    Given: 25

    Mortgage Question - Iowa Finance Authority/FHA/etc.

    Potential first time home buyer. I was looking into financing options and trying to figure it out on the internet. My wife also went to talk to a guy at US Bank about our options and it left me a bit more confused since it seemed to contradict domr of what I had been reading. So here is our situation.

    Looking to buy a $120K house with a 5% downpayment (maybe 10%). Credit score is excellent and we have no debt.
    Iowa Finance Authority (IFA) has 2 first time home buyer programs that's suppose to help keep interest rates lower and even maybe help out with up to a $2500 grant (thru FHA; rate is 3.75% with no grant or 4.25% if you do the grant).

    Guy at US Bank says IFA is a hassle and sucks. FHA does too since he says that we'll have to pay an extra $100 a month for PMI. Says if we do 5% down, he'll give us a conventional loan at a 4.6% rate and it'll save us money ($75/month I think).

    Does that sound right? From what I had gathered, FHA required an MIP which you could roll into the mortgage and maybe a monthly 0.55% PMI charge (or something similar; had been 1.1% until a year or so ago). On the whole, it seemed the FHA was a no brainer. But I can't quite figure it out. Any help?

    Thanks!



  2. #2
    All-Star
    Points: 42,620, Level: 63
    Level completed: 75%, Points required for next Level: 330
    Overall activity: 1.0%
    Achievements:
    Veteran25000 Experience Points
    JY07's Avatar
    Join Date
    Aug 2009
    Posts
    1,158
    Points
    42,620
    Level
    63
    Thumbs Up
    Received: 17
    Given: 18

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by shadow View Post
    Potential first time home buyer. I was looking into financing options and trying to figure it out on the internet. My wife also went to talk to a guy at US Bank about our options and it left me a bit more confused since it seemed to contradict domr of what I had been reading. So here is our situation.

    Looking to buy a $120K house with a 5% downpayment (maybe 10%). Credit score is excellent and we have no debt.
    Iowa Finance Authority (IFA) has 2 first time home buyer programs that's suppose to help keep interest rates lower and even maybe help out with up to a $2500 grant (thru FHA; rate is 3.75% with no grant or 4.25% if you do the grant).

    Guy at US Bank says IFA is a hassle and sucks. FHA does too since he says that we'll have to pay an extra $100 a month for PMI. Says if we do 5% down, he'll give us a conventional loan at a 4.6% rate and it'll save us money ($75/month I think).

    Does that sound right? From what I had gathered, FHA required an MIP which you could roll into the mortgage and maybe a monthly 0.55% PMI charge (or something similar; had been 1.1% until a year or so ago). On the whole, it seemed the FHA was a no brainer. But I can't quite figure it out. Any help?

    Thanks!
    If you can do a conventional, it's going to be the route to go.

    I'd talk to more than just u.s. bank about it, though, and look at other options outside of the 30 year depending on your situation



  3. #3
    Addict
    Points: 109,583, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 47.0%
    Achievements:
    SocialVeteran50000 Experience Points
    JP4CY's Avatar
    Join Date
    Dec 2008
    Location
    Sommerset
    Posts
    6,176
    Points
    109,583
    Level
    100
    Thumbs Up
    Received: 236
    Given: 97

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by JY07 View Post
    If you can do a conventional, it's going to be the route to go.

    I'd talk to more than just u.s. bank about it, though, and look at other options outside of the 30 year depending on your situation
    I agree. In this market anything more than 4% with good credit and a good down payment shouldn't be considered.
    I just did a 30/3.8 @ Community Choice and they in turn sell it to US Bank.



  4. #4
    Pro
    Points: 57,680, Level: 74
    Level completed: 43%, Points required for next Level: 870
    Overall activity: 19.0%
    Achievements:
    Veteran50000 Experience Points
    Acylum's Avatar
    Join Date
    Nov 2006
    Location
    Parts Unknown
    Posts
    2,340
    Points
    57,680
    Level
    74
    Thumbs Up
    Received: 207
    Given: 561

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Won't you have to pay PMI no matter what route you go?


    I'd agree with you, but then we'd both be wrong.

  5. #5
    Addict
    Points: 109,583, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 47.0%
    Achievements:
    SocialVeteran50000 Experience Points
    JP4CY's Avatar
    Join Date
    Dec 2008
    Location
    Sommerset
    Posts
    6,176
    Points
    109,583
    Level
    100
    Thumbs Up
    Received: 236
    Given: 97

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by Acylum View Post
    Won't you have to pay PMI no matter what route you go?
    Under 20% yes.



  6. #6
    Speechless
    Points: 432,923, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 9.0%
    Achievements:
    SocialRecommendation Second ClassVeteranCreated Album pictures50000 Experience Points

    Join Date
    Nov 2007
    Location
    Ames
    Posts
    23,826
    Points
    432,923
    Level
    100
    Thumbs Up
    Received: 125
    Given: 17

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by Acylum View Post
    Won't you have to pay PMI no matter what route you go?
    Yep. Not enough down.

    Edit: Too slow.



  7. #7
    Legend
    Points: 269,014, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 61.0%
    Achievements:
    SocialRecommendation Second ClassVeteran50000 Experience Points
    chuckd4735's Avatar
    Join Date
    Mar 2006
    Location
    Ankeny, Iowa
    Posts
    14,273
    Points
    269,014
    Level
    100
    Thumbs Up
    Received: 631
    Given: 154

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by JY07 View Post
    If you can do a conventional, it's going to be the route to go.

    I'd talk to more than just u.s. bank about it, though, and look at other options outside of the 30 year depending on your situation
    I agree, although when we did our a year ago, we ended up going with US Bank. Everything I looked into seemed to be pretty similar, and ended up going with US Bank because they bought down a percentage of the loan for the first year, which in the end saved us just under $1,000 over this past year.



  8. #8
    Bench Warmer
    Points: 7,128, Level: 25
    Level completed: 16%, Points required for next Level: 422
    Overall activity: 0%
    Achievements:
    Veteran5000 Experience Points

    Join Date
    Nov 2009
    Location
    Polk City, IA
    Posts
    292
    Points
    7,128
    Level
    25
    Thumbs Up
    Received: 1
    Given: 4

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    I have found that paying an extra 1-2% at closing to pay for all of the PMI up front is better than paying PMI monthly until you hit 80% LTV. Although with a home worth $120,000 you might be able to do a 15 year and be at 80% LTV in no time at all.



  9. #9
    All-Star
    Points: 25,141, Level: 48
    Level completed: 60%, Points required for next Level: 409
    Overall activity: 2.0%
    Achievements:
    Veteran25000 Experience Points

    Join Date
    Jul 2008
    Posts
    1,270
    Points
    25,141
    Level
    48
    Thumbs Up
    Received: 21
    Given: 39

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    If you have any connection with a smaller community bank, talk to them. They will likely have more flexibility as far as what your options are.

    Edit: BTW, 4.6% sounds ridiculously high right now.


    Last edited by GoCubsGo; 03-29-2012 at 03:29 PM.

  10. #10
    Speechless
    Points: 728,872, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 44.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience PointsOverdrive
    Cyclonepride's Avatar
    Join Date
    Apr 2006
    Location
    A pineapple under the sea
    Posts
    47,211
    Points
    728,872
    Level
    100
    Thumbs Up
    Received: 1,146
    Given: 599

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    FHA put the kabosh on selling my other house (one day before closing) because a fuel tank across the street was 280' instead of 300'. Not that I'm bitter.



  11. #11
    Bench Warmer
    Points: 8,334, Level: 27
    Level completed: 31%, Points required for next Level: 416
    Overall activity: 0%
    Achievements:
    Veteran5000 Experience Points
    vortec22's Avatar
    Join Date
    Sep 2009
    Location
    Grinnell, IA
    Posts
    240
    Points
    8,334
    Level
    27
    Thumbs Up
    Received: 2
    Given: 1

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    I bought my first house a end of 2009, I got 100% financing doing an 85% and a second mortgage at 15%, no PMI.



  12. #12
    Addict
    Points: 109,583, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 47.0%
    Achievements:
    SocialVeteran50000 Experience Points
    JP4CY's Avatar
    Join Date
    Dec 2008
    Location
    Sommerset
    Posts
    6,176
    Points
    109,583
    Level
    100
    Thumbs Up
    Received: 236
    Given: 97

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Quote Originally Posted by vortec22 View Post
    I bought my first house a end of 2009, I got 100% financing doing an 85% and a second mortgage at 15%, no PMI.
    What was your rate(s) though?



  13. #13
    All-Star
    Points: 29,423, Level: 52
    Level completed: 71%, Points required for next Level: 327
    Overall activity: 4.0%
    Achievements:
    Recommendation Second ClassVeteran25000 Experience Points
    Cyclones01's Avatar
    Join Date
    May 2008
    Location
    Ankeny
    Posts
    1,540
    Points
    29,423
    Level
    52
    Thumbs Up
    Received: 99
    Given: 224

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    My fiancee and I are in the process of buying our first home right now. We used Tyler Osby at Fairway Independent Mortgage in Urbandale, and it has really been pretty painless. Personally, I would rather not use one of the bigger banks in town. We spoke with them at first, but I felt much more comfortable with a smaller, local mortgage company. I would definitely recommend Tyler for first time home buyers if you are looking to buy in central Iowa. We also used Mark Charter at Remax for our real estate agent and he was very helpful. I would definitely recommend both of them. They are both honest and straight forward guys and both grew up in central Iowa.

    Mark - www.markcharter.com
    Tyler - www.wealthwithmortgage.com

    If anyone wants more information, feel free to PM me.



  14. #14
    Addict
    Points: 166,630, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    Created Album pictures50000 Experience PointsOverdriveRecommendation Second ClassSocial
    CLONECONES's Avatar
    Join Date
    Mar 2012
    Location
    RVA
    Posts
    7,191
    Points
    166,630
    Level
    100
    Thumbs Up
    Received: 7
    Given: 6

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    I just got finished underwriting an FHA loan.......

    anyways, from my perspective (not sure if you care) I'd stick with conventional if you have the means to do so - FHA is not a bad alternative, good rates, nice FTHB perks...

    Definitely shop around, if you have called 2 places, call 6 more - it will definitely be worth your time. If a rate seems too good to be true, you guessed it...

    Most lenders do offer 3/8-5/8% first time homebuyer discounts - or a couple points on closing costs - be sure you find all of these out up front!

    happy shopping, but remember, stay within your means (PMI isn't the end of the world)




    Self proclaimed 2012 CF Newcomer of the Year

  15. #15
    Pro
    Points: 31,215, Level: 54
    Level completed: 34%, Points required for next Level: 735
    Overall activity: 2.0%
    Achievements:
    SocialVeteran25000 Experience Points

    Join Date
    Apr 2006
    Posts
    2,841
    Points
    31,215
    Level
    54
    Thumbs Up
    Received: 9
    Given: 2

    Re: Mortgage Question - Iowa Finance Authority/FHA/etc.

    Conventional is the way to go. If you do a second mortgage instead of paying a down payment, you are an idiot. The guy I bought from did that and he had to pay $16,000 to the bank after closing. If you can't put at least 5% down, you shouldn't be buying a house.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • TV: Fox Sports 1
  • Iowa State vs. North Dakota State
  • August 30, 2014
  • 11:00 AM