FHA Versus Conventional Loan (With and Without Closing Costs) Example


In today’s economy, it is often hard for buyers to come up with the additional money for closing costs and/or sellers are not willing to pay some or all of buyer’s closing costs to buy residential real estate.  Thus, I have been provided with an example of FHA versus Conventional Loans (with and without closing costs) for a property offered at $179,900.

money-7As demonstrated in the above exhibit, the cost to roll in the additional costs for either a Conventional or FHA loan is nominal over a 30 year term.  These closing costs include, but are not limited to real estate commissions (usually paid by the seller), lender fees (i.e..loan origination fee, loan discount points, application fee, etc.), homeowner’s insurance (in some cases flood insurance is required), real estate taxes, title feees, survey costs, inspections (i.e.pest.and home inspectors), etc.  With the new FHA rules that require mortgage insurance over the entire term regardless of loan-to-value, a conventional loan is a home buyer’s best option (if they can qualify for it).  FHA still is the easiest to qualify for.

KW1784102f20KW_thumb.jpgFor more information about finding the right financial product for you, you can contact Stephen Speer at stephenspeer@inlanta.com, or visit his web site atstephenspeer.com.  

You should consider using a realtor.  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty a.t 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link


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