Getting an FHA Loan:

[Grand58742]

With the current situation, is now the time to be getting an FHA loan, especially with the whole credit down grading and all? I have the option of an FHA or a VA loan with the interest rates on the FHA being slightly better.

Just concerned with the whole credit downgrading and all. Wondering what this might do over the next few weeks with the interest rates.

[Rmplstlskn]

If you can get ANY loan, you are doing better than many finance hell stories I hear... Just the usual... Make sure your income is SOLID in an unstable future so you can pay your pay'ts and that your budget allows for inflation of common foods and staples.

If the right property comes up, I'd say jump now, as interest HAS to go UP with an AA++ rating.

Rmpl

[miked2345]

make sure any loan you get is a FIXED rate and not an adjustable rate..... The adjustable rate loans will soar when interest rates go up!

[Grand58742]

Yes, it's sitting at a flat 4.25% right now.

Which is why I was wondering whether or not to rip the bankers arm off or not.

And yes, Rmpl, I found a place already and was pre-approved for a loan.

[610Alpha]

My financial adviser "Dave Ramsey" says to stay away from the VA loans they are expensive in the long run and don't help our veterans. I highly recommend his class. I listened to his lessons every day for months before I really got it. He recommends 20% down 15 year fixed rate, taking out a 30 year and saying "I'll pay it like a 15" doesn't always happen. A 15 year pays off in 15 years plus you save a butt load in interest vs the 30 year. If you can't do the 20% down 15 yr fixed then just rent until you can do it...IMHO.

[miked2345]

Or you can do like my friends did.... refi their 30 yr loan with 12 years left on it, for another 20 yrs, to pay off credit cards... nothing like financing a big screen TV and furniture for 20 years!! :confused:

[Yeti]

Grand,
I did a FHA back in 2000 for my first house, and I did a VA loan for my current one in 2008.

Paperwork wise the VA one was easier, but I also wasn't jumping through hoops that I didn't know existed in 2000. I was a little wiser going into it this time around.
The 4.25% Fixed 30yr is a decent rate and is what I have currently.

I know in 2010, a lot of the rules changed on the VA Loans. Friend of mine ran into the changes when they were getting theres. Apparently there were a lot of changes to what they would accept as property and how the Inspections were handled was the big thing.

I believe the $$ amount allowed is higher with the FHA as well. I think the VA caps out at $300k.

Your probably already getting the advice, but do a search yourself on the Property Tax records for your place and the surrounding places. See what the market has done to them since 2000. 2005-6 should be the peak value year with it dwlinding after that crashing last year. My house dropped 35k in property tax value between purchase and last year's tax bill.

Good luck on the purchase.

[Rmplstlskn]

Fanny & Freddy just got downgraded by S&P, so you may want to move soon...

[Grand58742]

Fanny & Freddy just got downgraded by S&P, so you may want to move soon...

Yeah, saw that...