An easier way to get a mortgage? Maybe!
#16
Re: An easier way to get a mortgage? Maybe!
i also wanted to echo the 'pre approval' is not the end thing - sorry.
My boss who is American and well to do etc and great credit, relocated to TX recently. she got a pre approval, and made her offer etc and still had a lot of hoops and stress to go through.
My boss who is American and well to do etc and great credit, relocated to TX recently. she got a pre approval, and made her offer etc and still had a lot of hoops and stress to go through.
#17
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: An easier way to get a mortgage? Maybe!
FHA loans are great if you put down little money and/or you have poorer credit. Otherwise, they are an expnensive option compared to a conventional loan.
http://www.fha.com/fha_requirements_..._insurance.cfm
#18
Forum Regular
Joined: Jun 2012
Posts: 152
Re: An easier way to get a mortgage? Maybe!
"Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent."
What I get from that is still that it wouldnt be required :S
Cx
#19
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: An easier way to get a mortgage? Maybe!
The first paragraph on this site says
"Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent."
What I get from that is still that it wouldnt be required :S
Cx
"Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent."
What I get from that is still that it wouldnt be required :S
Cx
For the up-front insurance premium:
Increase to Up-Front Mortgage Insurance Premium
The UPMIP will be increased from 1.0% to 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio. The increase in UPMIP will be effective for all case numbers dated on or after April 9th 2012.
The UPMIP will be increased from 1.0% to 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio. The increase in UPMIP will be effective for all case numbers dated on or after April 9th 2012.
SF forward mortgages with amortization terms of 15 years or less, and a loan to value ratio of 78% or less, remain exempt from the Annual MIP (Mortgagee Letter 2011-35).
And at the bottom of the page:
For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.
Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums.
And in the FAQ link it says in answer 15:
This cost is borne by the homebuyer, but the insurance cost ends approximately five years later, or when the FHA mortgage balance is seventy-eight percent of the property value, whichever occurs last.
http://themortgagereports.com/7570/fha-mip-cancel
One significant point I didn't know is you can't use an appraisal to prove you now have <78% LTV. The only way would be to have paid enough principal.
Last edited by Giantaxe; Oct 8th 2012 at 4:47 am.
#20
Forum Regular
Joined: Jun 2012
Posts: 152
Re: An easier way to get a mortgage? Maybe!
I don't think so. From lower down:
For the up-front insurance premium:
And for the recurring premium:
Note the "and" in that clause.
And at the bottom of the page:
So everyone gets charged the upfront fee, and you'll be stuck with five years of the recurring fee regardless of LTV. The only way to avoid this to to have a term of 15 years or less, as noted at the very bottom of the page:
And in the FAQ link it says in answer 15:
A clearer explanation of all this here:
http://themortgagereports.com/7570/fha-mip-cancel
One significant point I didn't know is you can't use an appraisal to prove you now have <78% LTV. The only way would be to have paid enough principal.
For the up-front insurance premium:
And for the recurring premium:
Note the "and" in that clause.
And at the bottom of the page:
So everyone gets charged the upfront fee, and you'll be stuck with five years of the recurring fee regardless of LTV. The only way to avoid this to to have a term of 15 years or less, as noted at the very bottom of the page:
And in the FAQ link it says in answer 15:
A clearer explanation of all this here:
http://themortgagereports.com/7570/fha-mip-cancel
One significant point I didn't know is you can't use an appraisal to prove you now have <78% LTV. The only way would be to have paid enough principal.
Cx
#21
Rootbeeraholic
Joined: Aug 2009
Location: Houston, Tx
Posts: 2,280
Re: An easier way to get a mortgage? Maybe!
Thanks for this. So it has to be <78% LTV based on the purchase price. I guess that makes sense otherwise a boom market could allow people to get off the FHA insurance, only for the house price to then drop again.
#22
Just Joined
Joined: May 2011
Posts: 17
Re: An easier way to get a mortgage? Maybe!
We got a home loan through HSBC with no credit history, although we did put 25% down.
The interest rate is higher than normal also at 4.4%.
But if you need help I can PM the details of the person at HSBC that helped us, when no other bank would.
The interest rate is higher than normal also at 4.4%.
But if you need help I can PM the details of the person at HSBC that helped us, when no other bank would.
#23
Re: An easier way to get a mortgage? Maybe!
Sorry, I meant did Brat1 find it quite straightforward as she used the same company we are using (or at least, I read that into her response!). I should have quoted her .
Any mortgage with a big bank that is establishing UK credit history in the UK such as BOA and Wells Fargo is bound to have loads of hoops to jump through, based upon my previous reading on here.
Mortgage Master seem 'different' somehow - the guy I am dealing with seems to think he has all he will need for it to complete, once we find a house.
Any mortgage with a big bank that is establishing UK credit history in the UK such as BOA and Wells Fargo is bound to have loads of hoops to jump through, based upon my previous reading on here.
Mortgage Master seem 'different' somehow - the guy I am dealing with seems to think he has all he will need for it to complete, once we find a house.
#24
Re: An easier way to get a mortgage? Maybe!
Sorry, haven't been on much lately. No, we had no problems, got pre-approval, found a house, had our offer accepted, mortgage was in place and I found it all relatively straightforward. And we managed to get the mortgage with just one years tax return, normally they like to see 2, but no, it was fine. Good luck