4 ms·

20% down is only for investment properties, not Single Family homes. 3.5% for FHA is the norm. 3.5% * 348k = $12,180, plus closing costs, maybe $20k in all. At

20% down is only for investment properties, not Single Family homes. 3.5% for FHA is the norm. 3.5% * 348k = $12,180, plus closing costs, maybe $20k in all. At 100k+ per year, you're making 6,000 per month, so you should easily be able to save enough for a 3.5% downpayment. Does nobody understand how to buy homes on this thread?! It's pretty easy if you make >100k In My Opinion! Plus, there are multiple downpayment assistance programs (google it) that will let you buy your first home with 0% down. Some of them have income limits, but I know some of them do not, as I qualify for one and I make >100k.

MuffinFlavored 7y ago
Will you have PMI for the duration of your FHA loan, or do you wait to refinance by the time you have 20% equity?
- thrower123 7y ago
  Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than that. This is what I did on my house - between the real estate market bouncing back after the financial crisis, and some renovations I did, after two years the value of my house increased almost 50%. My credit score had also gone up, and interest rates had gone down, so I also was able to get a better interest rate. [1] https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-p...
  - ender341341 7y ago
    For FHA loans you can't cancel the PMI (since 2013 I think), it's there for the length of the loan.
    - masonic 7y ago
      Once you are below 80% LTV, refinancing without PMI should be easy.

MuffinFlavored 7y ago

Will you have PMI for the duration of your FHA loan, or do you wait to refinance by the time you have 20% equity?

thrower123 7y ago
Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than that. This is what I did on my house - between the real estate market bouncing back after the financial crisis, and some renovations I did, after two years the value of my house increased almost 50%. My credit score had also gone up, and interest rates had gone down, so I also was able to get a better interest rate. [1] https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-p...
- ender341341 7y ago
  For FHA loans you can't cancel the PMI (since 2013 I think), it's there for the length of the loan.
  - masonic 7y ago
    Once you are below 80% LTV, refinancing without PMI should be easy.