FHA Mortgage Help

[UGA12]

Alright guys need some help understanding if I am getting screwed or everythings on the level. First house so excuse my ignorance. Found a great deal on a house and guy accepted my offer of 103500 (small beans for you boys Im sure). Got my mortgage(FHA) contracts the other day and I dont see the 103500 price any where. The closest thing I see is purchase price 107800, and Loan Amount 106100. I called and the lady told me something about the seller was paying my 3% down payment. I did not know there was a down payment on a FHA loan, I thought that was the whole point of them. The seller is paying closing so that should not have anything to do with it. I do realize they roll first years mortgage insurance/taxes/few days intrest and such into the loan but that only comes up to about 2000. What does it look like to you, does everthing sound about right, anythingI should ask or do. Any help would be great guys

 

[UGA12]

Figured we had someone here that knew about loans, guess not :nooo:

 

[Chanman]

Wish I could help. Will try to look up something...GL2U

 

[Agent 0659]

Bought my house same way. No money down, FHA no money down. Did Neamya program. It was listed the same way. I asked the same question. Its ok and legit.

 

[HarleyDavid]

This should tell you all you need to know about FHA Loans. Also, you can go to Housing and Urban Development (HUD) Websites and learn about all types of loans. From what I understand of FHA Loans, it seems what you are experiencing is about right. Problem is, you are not getting the right person to explain it to you. My suggestion is not to sign anything until you fulling understand what you are committing to.

Facts About FHA Loans

Let us know ...

 

[macavoy]

FHA loans are usually 97% financed with 3% down. What they often due is add the $$ amount the that the owners are paying you for closing costs into the purchase price and then the owner/mortgage co kicks you back money at closing....

Im an appraiser it happens all the time here. A house will be listed for 200k and sell for 205k(not cause its a good market right now, its not) with a $5000 sales concession, meaning the owners kicked back the cash at closing....hope that helps.

 

[UGA12]

Thanks Guys, feel a little better about it now. Going to read some more and talk to a few more people before I sign though. Again thanks

 

[Chanman]

GL& Hope it works out.

 

[HarleyDavid]

Im an appraiser it happens all the time here. A house will be listed for 200k and sell for 205k(not cause its a good market right now, its not) with a $5000 sales concession, meaning the owners kicked back the cash at closing....hope that helps.

I've thinking about getting into that field. How's the money and your assessment of the job itself?

Seems like there's a lot of classes you have to take.

 

[Franky Wright]

UGA,
First off, did you use a Realtor? If you did, then he/she is not doing their job. If you did not, then stick your hand out palm side down.....................SLAP on the back of your hand from Franky........... :142lmao:
Seriously, I have been a Broker/Realtor for over 20 years, and just because I think you should use one, does not necessarily mean you should.
However, with the info you provided, it seems like you are getting the shaft :scared
I would need to read your Offer to Purchase to be sure, but you just dont "automatically" roll down payments and closing costs into FHA mortgages. That is one option of many :sadwave:
I would be more than happy to help, get my email from Jack if you want...........
Franky

 

[UGA12]

Would like to talk to you franky, not sure how to get your e-mail though, if you want you can shoot me one real quick or tell me what I need to do to get yours. Thanks in advance. And yes I did use a realtor

[Email edited out. no posting of email addys. Get them from Jack or admin]

 

[loungelizard]

Been a Realtor for 9 years and have done quite a few FHA loans, FHA loans have higher closing costs and looking at the limited info avail on yours, the seller is paying your closing costs and down payment (on paper) but the sale price has been modified to reimburse the seller those costs, if you used a Realtor, there should be an addendum to your contract to reflect the changes, it's all good as long as the house appraises right, pretty common practice in Missouri Real Estate.

Good Luck with your new home.

LL

 

[UGA12]

Thanks lizard, I just always though 100% financing meant nothing down, am I to understand what it really means is 3% down that they roll into the loan :shrug:


Franky you got mail :help:

 

[loungelizard]

Most FHA loans are 97% and require the house to be up to their standards, USDA has a program through Rural Development that have 100% loans but I believe the max you can borrow under that program is around $87,000