Is it ok to offer about 10% more on a home w/ FHA Loan?
I am looking at a home that is $46,900. But FHA requires the loan is $50K. Is it ok to offer $52K to make sure that the loan is enough after my down payment? Because that will make it just enough. Are there guidelines against this if the seller pays all cost and buys me a warrenty. I just need to know?
Tags: About, Home, Loan, More, Offer
2011/07/04 at 23:31:57
The house does need to be appraised at 52,000 for you to get an FHA loan for that amount.
Honestly, I am dealing with FHA right now and I am not too impressed. Nobody really seems to know what is going on. If a down payment is your problem, ask your lender if they can get you a conventional loan with 5% down. That will save you a lot of time and stress in the end!
2011/07/04 at 23:06:08
If the home is priced at $46,900, it is highly unlikely to appraise at over $50,000. You’ll be lucky if it appraises at $46,000-47,000 since home prices are still declining in most areas, and another boatload of foreclosures is coming on the market.
And on a $50,000 home, you need $10,000 down payment. If you were watching CNN yesterday, it is nearly impossible to get a mortgage with less than 20% down, and for FHA, at least 700 credit score. Bidding up the price is NOT going to get you that house! Of course, I’ve been seeing that going on for about 2-3 years now!
It looks, from the info you give here, like you have nowhere near enough income or down payment, etc, to be buying a home. You’re gonna offer $52k on a house and get $50k mortgage? Not even when pigs fly.
2011/07/04 at 22:07:41
This is a good plan, assuming that the house appraises for at least 50k.
2011/07/04 at 21:32:42
it is legal and a good strategy; since FHA has arbitrary [dumb] rules