FHA Home Mortgage Loan Interest Rates

One Response to “Question about FHA home loan in regards to home’s appraisal price.?”

1. Steve D says:

   January 17, 2010 at 11:47 am

   The appraisal needs to come in high enough so that your down payment constitutes at least 3.5% of the appraisal price, .that becomes your equity.

   As an example, let’s say you want to buy a house and offer $110,000 which accepted. You are putting down $10,000 and taking a mortgage for $100,000. If the appraisal comes in anywhere above $103,500 (really a touch higher, but we are rounding), you are okay because you are mortgaging $100,000 which means you are putting 3.5% (or more) down. But if the appraisal comes in say $101,000, then you would have to come up with more money, you can only borrow 96.5% of the appraisal (about $97,500).

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