BadCreditMan Posted November 27, 2007 Report Share Posted November 27, 2007 Hi, Im currently trying to refiance into FHA. My wife and I closed on a house on Sept 28th of this year. We were kind of stuck at the time and didnt do FHA to begin with but a loan officer told me we could refiance into FHA after. We have a conventional 30yr fixed loan at 8.25% with a huge PMI payment since we went 100% financing. We are really trying to get out of the PMI. We bought the house for 195,900. The house appraised for 215,000 at the time of purchase. I have just started the FHA process and now my loan officer says even though the credit scores are in line FHA will no longer give me a loan for 97% of appraised value. They will only do a loan amount for 97% of the purchased value which makes it impossible for us to do. Is there anyone out there with advice or someone that can help us out here?ThanksScott Link to comment Share on other sites More sharing options...
jq26 Posted November 27, 2007 Report Share Posted November 27, 2007 Try Charles in this mortgage forum. Members have posted positive experiences (though I have no experience personally). FYI about FHA. You will have PMI. It is just paid differently. You pay 1.5% upfront (required), then pay PMI monthly. But the monthly portion is reduced because of the upfront lump sum that you pay. To give you an idea, my upfront lump sum was $3500 and my monthly portion is roughly $80 that is paid to HUD Insurance.So you'd put 3% down, pay 1.5% upfront PMI, plus whatever other closing costs you pay. But you may have a rate in the high 5's/low 6s instead of low 8s. It is almost impossible to escape PMI in the current lending situation with little down payment. Link to comment Share on other sites More sharing options...
BadCreditMan Posted November 27, 2007 Author Report Share Posted November 27, 2007 Yeah thats what Im afraid of. My loan officer told me I would be paying MIP which I guess is the same as PMI but its only at about 100 per month as opposed to what Im paying now which is just insane. I just didnt have much of a choice at the time Link to comment Share on other sites More sharing options...
firstsource Posted November 28, 2007 Report Share Posted November 28, 2007 I Just confirmed with an FHA investor's underwriter and you can refinance "rate and term" which means no cash out for the full purchase price. You would have to wait a year to refinance and get cash out however.Charles Link to comment Share on other sites More sharing options...
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