Mortgage Options

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Irvinecommuter

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So the wifey and I are looking to buy...probably Plan 3 San Marcos.  Figure a purchase price of $650,000 with a conservatory build out and other stuff.  We will have about $40,000 to use for down payment and looking at FHA.  The MIP does really annoy me as we will be paying $650 for basically buying without 20%.

Are there any other mortgage options out there?  Are the 80/15/5 gone? 

Thanks.
 
Irvinecommuter said:
So the wifey and I are looking to buy...probably Plan 3 San Marcos.  Figure a purchase price of $650,000 with a conservatory build out and other stuff.  We will have about $40,000 to use for down payment and looking at FHA.  The MIP does really annoy me as we will be paying $650 for basically buying without 20%.

Are there any other mortgage options out there?  Are the 80/15/5 gone? 

Thanks.
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No such thing as an 80/15/1 loan program.  I believe SGIP's company offered an 80/10/10 program but not sure how high you can go on the first mortgage. 
 
If your loan amount (first loan amount) was under 417k then you could finance up to 95% as a first mortgage with PMI using a conventional loan (PMI is lower than FHA PMI).  I would advise you to speak with a lender and see what options are out there for you.
 
Once you cross the Rubicon - $417k loan amounts, it's either 10% down minimum or FHA. I'd take a good long look at 10% down. Sell your stuff, borrow from friends, do what you can because the 10% down payment isn't that far away if your comparing 5% FHA to 10% down conventional.

An example:

$605k price $575,000 loan amount + 1.75% for the UFMIP is really $585,625 at 3.75%. The payment is $2,712  plus $598  for MIP. $3,310 total.
$605k price, $544,500 loan amount. Rate at 4.125%. The payment is $2,638. PMI is .49% or $222. Total of $2,860

$450 per month saved for $31k down - 68 payments.

FYI - You've got to keep the FHA insurance for 5 years minimum. You're already 1.75% behind what with the UFMIP.  If FHA's the only way, might as well take what's available.

My .02c
 
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