FHA question
We just want to buy our first house and get out of an apartment. We need to use FHA because of the low downpayment requirement. The prevailing REOs all need work. The standard sales that meet FHA requirements go fast and high. What a game we're in.I have heard some positives and negatives regarding the FHA 203K loan. Since you are all experts in the industry, what do you all suggest?I would greatly appreciate your help! by johnnyb from La Habra, California. Oct 12th 2009
Brian Esquivel (NewAZMortgage)
#23 ranked lender in Arizona - 67 contributions
I would stick to a standard FHA home loan instead of a 203k rehab loan. Not only will you get a better interest rate and lower monthly payment by doing so but you will not have all of the extra stress that comes with this type of transaction on your first home purchase.You might have to look a little bit longer but you should be able to find a home that needs mininal repair work. Be sure to comp out the value of the home you are looking buy carefully and make the sellers a strong offer. Remember, if your offer is the best and the sellers accept it and the home appraises for less than the accepted contract price, the sellers will sign an addendum 9 out of 10 times at the lower appraised value and you will still get the home at a lower price and consequent lower monthly payment!!
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