Have FHA Loans Become More Expensive?

“I heard FHA loans have become more expensive. Is that true?” Answer: They’ve become both more expensive and cheaper. How could that be? Several months ago, HUD (Dept of Housing and Urban Development) changed how they charge the “MIP” or Mortgage Insurance Premium on FHA loans. The upfront premium due at closing has been trimmed
Read more
No Comments

Should You Go to Where You Bank for a Mortgage?

“Do you recommend I go to where I bank to get a mortgage? Will they give me some kind of preferential treatment?” Answer: The answer would have been “yes” 50 years ago. However, today it’s very rare for a bank to give any significant benefit to one of their customers who gets a mortgage. Call
Read more
No Comments

Is APR the Best Way to Shop for a Loan?

“Is APR the best way to shop for a loan?” Answer: From my preferred lender, Robert Geiler of Rancho Financial: “The APR was developed to show borrowers the true cost of getting a loan as an interest-rate rather than a dollar amount. It was supposed to make it easier for to compare rates because, theoretically,
Read more
No Comments

Are Owners Carrying Back Notes?

“Are many owners carrying back notes nowadays? I almost never see it offered. With savings interest rates in the 1% range, you’d think it would be very common.” Answer: Good question. I agree with you that many owners would benefit by “being the bank” and letting the buyer make payments on a first or second
Read more
No Comments

How Big Your Down Payment Should Be

“Is it wise to put down a large down payment or put down the smallest amount possible? We have a lot of cash from the home we sold in Boston and can put down almost 50%. Or should we go 10% down and borrow the rest?” Answer: Simple question, not as simple to answer. Regarding
Read more
No Comments

Learning More About Home Refinancing

“Dear Mr. Kent, do you have some kind of reading material about home refinancing? We would appreciate it if you can send us some materials on this matter because we are seriously thinking of refinancing our San Diego home before our adjustable loan gets mature.” Answer: Thanks for your email. Since I don’t handle mortgages
Read more
No Comments

Lowest Down Payment to Buy a Rental Property

“What’s the lowest down payment you can make to buy a rental property?” Answer: Theoretically, you could buy a property that the owner finances and put zero down. But the odds of that happening are not much higher than that down payment. Fannie Mae sells some of their foreclosures for just 10% down to investors
Read more
No Comments

FHA Loans on Du-, Tri- & Fourplexes

Is it possible to get an FHA loan on a duplex, triplex, or fourplex? Answer: I was recently discussing that topic with my favorite lender, Robert Geiler of Rancho Financial. Here are the relevant bullet points of our conversation: – All FHA loans are for owner-occupants – The typical FHA loan is 3.5% down –
Read more
No Comments