Is 3.5% down on a FHA loan to buy a home a good deal if you have great credit?

/ August 5th, 2011/ Posted in fha loan / 9 Comments »

with today’s economy is this a good deal on a FHA loan with a 6.5% fixed apr?
i am a 1st time home buyer


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9Comments

  1. valoanguy
    2011/08/06 at 01:38:41

    As someone who does VA & FHA Loans for a living, the minimum requirement for an FHA Loan is 3%, and you can obtain up to 6% in seller contributions (covering any closing costs and prepaid items. In this business, we pay more attention to interest rates and not APR because it can be quite difficult explain clearly.

    As of today, interest rates are right around 6% for an FHA 30-yr fixed rate mortgage.

    This type of deal should be given to anyone with credit scores above 620. Having scores in the low 800′s, for example, may get you 5.875, but it’s likely that nothing else will change in the loan.

    I hope this helps. If you have any additional questions, please feel free to email me at fha.homeloans@yahoo.com.

  2. Lene
    2011/08/06 at 01:10:57

    That is a very good rate and down payment. I am also a first time home buyer. With great credit, we also are putting 3% down and 5.9% fixed. Go for it. Good luck!

  3. I am the Bridge to Nowhere
    2011/08/06 at 01:03:30

    interest rate and APR are different. I’m assuming you mean interest rate and yes those terms are typical. FHA and VA are government loans and they have strict guidelines that the loan company must follow so there is nothing shady going on if that is your concern. Good Luck !!

  4. Rico
    2011/08/06 at 01:02:21

    You might be able to get a better deal if you buy a new house directly from the builder.

  5. Alaska Pink Jewel
    2011/08/06 at 00:44:39

    That’s about what I got and I have “good” credit (roughly a 700 score), I asked around and everyone I talked to said it was a good deal for Alaska with the current economy. Of course if I had had “excellent” credit then I would have gotten a lower APR. Good luck!

  6. Kammie
    2011/08/05 at 23:50:01

    its 3% down now for a fha loan and 3.5% after jan 09. yes its a good deal if you dont have the extra money for a large downpayment.

  7. C00KiE
    2011/08/05 at 23:22:06

    i think that’s an alright deal. We’re going with an FHA also with 3% down with a 5.9% fixed.

  8. src50
    2011/08/05 at 22:44:15

    Yes, that’s fairly typical for a low-down FHA loan now.

  9. MasterSheff
    2011/08/05 at 21:46:11

    Yes It’s good if you want to spread out your payments, but because you are giving less up front you will make more payments or larger amounts.

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