Ravens 03 0 Posted February 20, 2007 OK, I'm looking at downsizing again. Need 100% financing for reasons not important here. Condo is my option in an FHA eligble area - Price $200K. What do I offer and what do I end up paying? Again - $0 money down is the goal/need. Can I offer $205K and they pay $5M of closing costs? Any other options make more sense? 80/20 [2 mortgages?] And what are rates on FHA today? And am I seen as a poor bidder by structuring it this way? I will be pre-qualified. TIA Share this post Link to post Share on other sites
Ravens 03 0 Posted February 20, 2007 I need help bump Share this post Link to post Share on other sites
paulinstl 296 Posted February 20, 2007 There are several lenders that will do 100% financing without having to go through FHA. A typical rate for 100% financing would probably be about 2% higher than the standard rate. You figure about a quater point rate bump for every 5% over 80% financed. You can raise the sales price and have the seller cover the closing costs, no problem. That's what you should do. I'd suggest talking with a local loan broker, then when you have a better idea of rate and fees, we can talk again and see what kind of deal it is. Share this post Link to post Share on other sites
usurpers26 26 Posted February 20, 2007 I believe FHA requires 3% down... You will get more info than you can handle over here: http://www.creditboards.com/forums - go to the mortgage forum. You should have a broker (you trust) run the numbers - if you have good FICOs that will always help too. You can compare GFEs of an 80/20 vs 100% financing. See which one works best for you. The 80/20 will avoid MI (although that's now tax deductible). But the 20 is ususally an adjustable rate - prime plus 2 is very common. And yes, seller concessions are very common - I think you can go up to 6% of the sale price as a seller concession to cover your closing costs. OK, I'm looking at downsizing again. Need 100% financing for reasons not important here. Condo is my option in an FHA eligble area - Price $200K. What do I offer and what do I end up paying? Again - $0 money down is the goal/need. Can I offer $205K and they pay $5M of closing costs? Any other options make more sense? 80/20 [2 mortgages?] And what are rates on FHA today? And am I seen as a poor bidder by structuring it this way? I will be pre-qualified. TIA Share this post Link to post Share on other sites
