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Allen Said:

FHA 203K mortgage with a Homesteps Foreclosure home?

We Answered:

So your realtor thinks they are a mortgage professional? 203 K loans require a contractor amd bids in the file. There is no do it yourself type of 203K loans. The easiest is a streamline 203 K where the rehab is less than $25.000 but either you or the contractor must put up the materials cost and then have that work inspected before funds will be disbursed. If the rehab is over that amount then there are draws at certain intervals for the repairs.
Realtors should only sell homes and not be loan originators when they are not
I am a mortgage banker in TN

Vicki Said:

Can I purchase a Fannie Mae Home using a FHA mortgage?

We Answered:

if the listing states cash or conventional only then it sounds like the seller knows the property will not pass FHA requirements. The seller will reject any offers that involve FHA or VA financing.

Elizabeth Said:

What is the highest percentage of your income that you can get for a monthly home mortgage? I am doing FHA.?

We Answered:

Why are you so concerned with the most you can get? You asked a similar question earlier.

Rarely can you AFFORD what you can get APPROVED for. Quit trying to figure out the most a bank will give you and figure out WHAT YOU CAN AFFORD.

Jane Said:

What are the advantages/disadvantages of FHA mortage vs conventional mortgage?

We Answered:

Always try conventional financing first. FHA will always charge an upfront mortgage insurance premium that could be avoided with conventional financing.

With a 20% downpayment, there's a good chance that you can qualify for conventional financing, even with weak credit.

FHA loans MUST be run through the FHA underwriting system first under every circumstance. Once that's been done, it's a 5-minute change process to convert it to conventional, and costs nothing extra. And you can start conventional and convert to FHA as well, same deal.

FHA loans pay brokers more than comparable conventional loans, in most cases. That's one factor that might be in play here. FHA is very lenient on credit, so that isn't a bad choice either, if that's what you can get. Any FHA rate offered in excess of 6.5% means you need to find a new, non-greedy broker.