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GaimanitePkat OP t1_itupbgr wrote

Reply to comment by breafofdawild in Mortgage Lender Recommendations - FHA by GaimanitePkat

Got a bankruptcy that'll be 2 years cleared in mid-December. Can't do anything until it's 2 years cleared, and (at least according to the guy I didn't like) we can't get anything else until it's five (?) years cleared.

He did advise refinancing a few years down the road to get into a conventional loan and not FHA.

We also cannot afford 20% down with no first time homebuyer grant. We barely eek over the line into "makes too much" and entire household income is counted.

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breafofdawild t1_ituqe5i wrote

No one expects you to put 20% down. That’s just to get around PMI thresholds. We have purchased two homes over the past 12-13 years in the RVA area and not once have we put down 20%. That being said, we liked dealing with Capcenter when we did our refi (they do purchases too).

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gracetw22 t1_itvud9a wrote

Would just caution anyone reading this thread who wants to go to capcenter or any other similarly structured internet lender that you can go to www.nmlsconsumeraccess.org and type in your loan officer and view their work history and see what kind of experience they have - depending on how straightforward someone's circumstances are, they might be fine with someone who is fairly new, and no loan officer is 100% flawless, but I think it would be valuable info if I were shopping lenders.

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GaimanitePkat OP t1_ituqt7y wrote

I saw them highly recommended in refinance threads here. Thank you.

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augie_wartooth t1_ituudgv wrote

I had a good experience with CapCenter lending. Do not use their realty services, though.

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GaimanitePkat OP t1_ituuppv wrote

nah I do like our realtor, just not the loan guy

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augie_wartooth t1_ituyy6d wrote

I’m glad! I just always want to tell anyone and everyone that their realty services are hot garbage. I had a hilariously bad experience.

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BubbleWrapGuy t1_itusn43 wrote

> No one expects you to put 20% down.

True. Including the down payment assistance grant, which was 2%, I put down a total of 3.5%. PMI comes to about $86/month for my home.

I believe that with FHA loans you get MIP which is like PMI except that it never falls off the loan. You have to refinance to get it removed. Please fact check that as it's been a minute since I've gone over all of this information.

Edit: Just looked this up -- from what I saw if you pay at least 10% down on an FHA loan you pay MIP for 11 years. Less than 10% down and you pay MIP for the entirety of the FHA loan.

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BlueXTC t1_ituvs3m wrote

Once you hit 20% equity you can request the PMI to be removed. I did it with our mortgage from VA Credit Union. It was removed for the next payment. You have to file a formal request and there is an appraisal done to make sure you have sufficient equity to remove the PMI

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BubbleWrapGuy t1_itv43x6 wrote

On a conventional loan, yes, you can request PMI to be removed after 20% equity and two years of on-time payments. FHA loans have MIP, which is basically the same thing as PMI but with different rules.

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GaimanitePkat OP t1_itutifw wrote

>I believe that with FHA loans you get MIP which is like PMI except that it never falls off the loan. You have to refinance to get it removed. Please fact check that as it's been a minute since I've gone over all of this information.

yeah this sounds about right. Like I said, the guy really flashed through everything so fast.

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dj1200techniques t1_itv66ls wrote

Yes but you can also do a rate and term streamline FHA refi once you have 20% equity and the PMI payment falls off.

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gracetw22 t1_itv8idx wrote

No, even a streamline FHA at 80% loan to value will have PMI. It’s a bummer but just how those loans work

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dj1200techniques t1_itv9a1m wrote

Whaaaaat ?? That must be something new. Then again I haven’t written a loan since 2008 🤷🏽‍♂️

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BubbleWrapGuy t1_itvbuuv wrote

I believe FHA loan rules changed in 2013 (based on the one source I checked this morning).

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gracetw22 t1_itvk1cz wrote

Yep, you can put 50% down on an FHA loan and the MI never drops off. I think it changed in the last 10 years but can't quite remember when.

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gracetw22 t1_itv8bsg wrote

Ughhhh I would love to know who you talked to because that’s not right- there’s only a five year waiting period on conventional for multiple filings. The FHA plan is likely still the right one but I hate when people give out bad info to borrowers because it’s too much work to look up the right answer. See it all the time on the Reddit, too.

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[deleted] t1_itusmn2 wrote

[deleted]

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dj1200techniques t1_itv6016 wrote

FHA will let you buy 2 years from a BK

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gracetw22 t1_itvp0cm wrote

CH 13 you can get an FHA loan as soon as you have made 12 on time payments on the plan, it's just a manual underwrite which means more thorough documentation. Different waiting periods for different circumstances and loan programs- sorry not trying to pick on you just wanted to make sure there was info here for anyone maybe reading this thread and getting discouraged.

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