Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
FHA vs. Conventional
I'm sorry for being a post whore, but I have so many questions, lol!
Right now, I am trying to decide on going the FHA route vs. Conventional. We will most likely be approved for a 10% down conventional loan (got verbal from LO, just waiting on letter). We have enough for 10% down payment, plus closing costs, but not much in terms of moving expenses, etc. If we go the FHA route, obviously we would put less down and would have more $$ for moving expenses.
Oh, and this would be WITHOUT touching our e-fund/savings account. I would like to not touch that at all during this process.
Thoughts?
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Re: FHA vs. Conventional
PMI with FHA loans are typically higher than PMI on conventional loans. Also the FHA loan we looked at last year had a 5 year minimum paying PMI which really turned us away.
It was worth it for us to do a conventional which kept our monthly payments a little lower, got rid of PMI quicker and we only had to bring a little more to closing.
exactly what lil_jen said...
I'd always go conventional if you can afford it. You are lowering your monthly payments and getting some equity in the house. You are also more attractive to sellers. If you do go this route make sure the house is a good investment i.e. in a good neighborhood, good schools, a house that would be "easy" to re-sell & one that will def. increase in value or is in a neighborhood where homes are not losing their value.
We are purchasing a home at a very reduced rate in a great neighborhood. Since we are renters and had no contingencies in our initial offer the seller was able to give us money for closing costs and give us a good deal on the house. We also know the house's value will continue to increase. The neighborhood is spoken highly of, it's in a good school district and our house is the least expensive on the block.
We had to sink in more than we initially planned, but the house is only 12 years old and we have a few years before we will need to make some improvements. It's definitely a scary thought to sink $ into a house, but if you find a good investment I'd consider going that route!