All Forum Posts by: Troy H.

FYI: FHA mortgage insurance is 0.85% per year, calculated more or less identically to interest. And, like interest, it is there for the life of the loan. Your real interest rate is 3.375% + 0.85% = 4.225%.

@Raven Walker

The only requirement is 1 year for FHA or Conventional so your 3 year plan will be fine to qualify for a primary residence. FHA has high mortgage insurance put it also only requires 3.5% down. So if you initially go this route, I would suggest refinancing down the road with conventional when you reach a 75% LTV to the current value of the property to remove the mortgage insurance. For a primary residence with conventional financing or an investment property with conventional financing here are the requirements:

Standard Conforming Limit Financing

For A Fixed Rate Purchase, Primary properties, Mortgages 1-10;

• A SFR requires a LTV of 97% (first home only) then 95%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75% (possibly 80% with Freddie Mac - on mortgage #1-6)

For A Fixed Rate Purchase, Investment properties, Mortgages 1-6;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%

For A Fixed Rate Purchase, Investment properties, Mortgages 7-10;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 720