Best Deal for Home Loan

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jojo88

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The best home mortgage deal I have found for entering professional students is the FHA 1-year ARM. No documentation is needed as long as you have a cosigner that can provide docs. No job needed. The rate is 3.75% with a 2.5 margin, 5%cap. Down payment is like 3%. Low closing costs. I have not found anything better and will be doing this loan myself (in the process now)...PM me if you want any more info
 

edmadison

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One note about the FHA loans is that they require PMI (at least that is what I have been told). This will increase your effective interest rate.

Ed
 

jojo88

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They do require PMI but it is like 60 something dollars per month...and since the rate is so low (3.75 1 year arm or 5.5% 30 year fixed) and minimal downpayment needed it really makes up for the PMI....but remeber this is for people without jobs and who have a cosigner...if not, this would not be the best deal ... in my opinion
 

mpp

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How could the offer a 3.75% 1-year ARM with a 5% cap or a 5.5% 30-year fixed...who in their right mind would ever go for the the 5.5%???

Double check that 5% cap that seems a bit too low...perhaps they mean a 5% cap increase such that the cap is actually 8.75%. That seems more likely.
 

jojo88

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yes..it is a 5% cap meaning 3.75 + 5 = 8.75....and can only go up 1% per year max.....rates went down last week so it is now even 3.5%...the only way someone would go for the 5.5% 30 year is if they plan on keeping the home for a long time...then, since the loan is assumable...it would be a selling point if interest rates were higher (say at 8%)..
 
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