FHA Conforming above $417,000 (DC) rates
Hi all!Thanks in advance for the responses. I am trying to understand the differences between likely rates for these scenarios and I can't seem to find good information on what happens with rates when your are above $417,000 even if you are still "conforming" under the current limits for Washington, DC (over $600,000). Also, I am curious to know for conventional products, how much down is required for loans over $417,000 in DC, as well as what the PMI would be for these loans. Does any mortgage insurer even offer PMI for anything less than 10% for loans over $417,000 in DC? Assumptions: FICO: 730+Ratios: Back and front both excellent Assets: Over 6 months of mortgage payments (after down payment and closing costs)Documentation: complete with incomeEmployment: Not self-employedDebts: No credit card debts, student loans onlyType of House: Single FamilyLocation: DCLoan Type: 30 yr fixed, no points Loan Situations: 1. FHA Loan, 3% down, mortgage of $465,600 (House price $480,000) 2. FHA Loan, 3% down, mortgage of $412,250 (House price of $425,000) 3. Conventional loan, 5% down, mortgage of $465,600 - is this even possible and is PMI available here - and if so at what cost? 4. Conventional loan, 5% down, mortgage of $412,250. How much is the PMI? Thanks so much! by cri77_597_936 from Washington, District Of Columbia. Sep 22nd 2011
Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 233 contributions
Once you go above $417,000, then it is considered a jumbo loan. You have scenarios for for FHA loans, the downpayment is actually 3.5% not 3%. With a credit score of 730, any loan above 75% except FHA, you will take .50% hit to the rate because of your score. For FHA, a loan above 95% the MI will be 1% on the total loan amount & the mnonthly MI will be calculated @ 1.15% of the loan amount, which in this case would be pretty hefty. On a conforming loan with the new MI rates the monthly MI is also going to be extremely high.What I would suggest, is talk to your friends get a referral to a mortgage broker who you can work with & let them do the work for you. Good luck!Nancy Relefordwww.homeequitymtg.com615-867-3060
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Washington DC fall's under the High Balance limits for FHA.. Lenders will typically lend, however they adjust their pricing accordingly. You have a lot of questions there, so my suggestion is to get with a competent local mortgage broker, (not a bank), and have him run your individual scenarios for you. Bottom line is... when it comes to lending , the more you can afford, the more you will pay. FHA has the lowest rates, but also the lowest loan amounts. Conventional has higher rates, but they also have higher loan limits.. Jumbo has even higher rates, and most likely will be an ARM, but they will lend the highest loan amounts... click on the "Find a Lender" tab above and look at the list "BELOW" the map... these are the Lender411 approved mortgage brokers.. WilliamAcres.com
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