Are there any loans that are alternatives to FHA but have similar downpayments and terms?
Some places I have found that I like say no FHA loans in the listings.
Also, I wouldn’t mind a house that needs a little minor work but I have heard FHA loans are very strict about the inspections.
Tags: alternatives, downpayments, Loans, similar, Terms, There
No, they are their own ball game.
VA is pretty good, but requires the seller to pay money, so not all go for that.
Either go conventional, or avoid foreclosures and bank owned if you want to go FHA.
FHA is strict about inspections and everything else. Technically, the minimum down payment is 3.5%. However, we’re finding deals with less than 20% cash down are developing an awful lot of “last minute hitches” and are not being funded by the closing date.
No other loan program has such low minimum down payments (except maybe VA if you are a veteran).
I wouldn’t risk trying to do a low-down mortgage. If house prices continue to decline, you will quickly end up underwater on your mortgage. You risk no funding at closing, even if approved. If not timely funded, you will have to pay penalties for failing to close on time. You’re better off putting that money into the down payment. Another, bigger, wave of foreclosures is coming as Option ARMs, Alt-As, prime and jumbo prime reset & recast. And it lasts until 2013. Do not take risks with your home now.
Va and USDA are the only 2 programs that are similar to FHA.