All Forum Posts by: Preston Schmidt

I can tell you from a lender stand point that the appraisal value doesn't get affected by cosmetic issues being out dated or worn out much if any at all on conventional because the property Itself is what they are appraising. Paint chipping would be an issue with an FHA appraisal if the house is older than 1978 due to lead paint scare.

Hello Kyle,

I just typed out a whole bunch of information for you and nothing saved and I lost it all so here I go for round two. Sorry for the delay!

I am a mortgage lender. What I would like to tell you is this. I have read all of these posts and I agree with just about all of them. What I would like to add is this. My favorite saying is "every loan has its own DNA" meaning every loan is different from one another and varies on the individual looking to take out the loan, their current financial situation, and the type of property they are looking to buy. In order to know what Is right for you, you must compare the options that you have:

FHA financing has these benefits:

3.5% down payment requirement

Lower monthly mortgage insurance requirement

Available for all individuals, not just for first time home buyers

Allows up to 6% seller paid closing costs

Can go up to 50% total debt to income ratio

You can transfer your loan and interest rate to anyone else if you move (this is called assuming the loan)

Downfalls to FHA financing:

Very hefty up front mortgage insurance premium (as stated in previous posts) but can be rolled into the loan amount (called financing it in)

Higher cost appraisals (more extensive requirements)

More stringent/strict underwriting and guidelines

You pay mortgage insurance for the life of the loan regardless of down payment

Other options available to you:

Conventional 3% down

Down Payment Assistance Loans in your area

Down Payment Assistance Grants (if available in your area)

Renovation Loans as low as 5% down

I hope this helps and let me know if I can assist any further!

Hello everyone. I am happy to be on here because I have a passion for educating people on the vast changes the mortgage industry has become accustomed to. With all of the TILA/RESPA compliance changes, timelines, appraisal requirements and timelines, allowed/not allowed practices, and current interest rates; these are the reasons I do what I do. I love to help first time home buyers and other curious home buyers along with refinancing do's and don'ts. Sometimes you don't know what you don't know and won't know if you do not ask...this is when I come in.

Preston Schmidt, MBA