PMI will apply in case of FHAdont be scared of paper work and think streamline is your only option. I worked with clients in NJ and NY and there are other alternative lending options that can offer 90% LTV with no PMI. Such programs might be of a little higher interest, but with the rates as low as they are, and you are thinking ARM, then it should be a big savings at the end of the month of you drop to the 3% range and lose your PMI.On another note, PMI can be cheaper on a non-fha loans, depending on the inscrutability of property and company insuring the loan. I can comfortably say, that with today's rate, if you have above 5% on a loan on $300K, you probably have a window to lower your payment by at least $300 a month if not more.
Your case is not as complex as you think. I hope you got your letter by now, contact me if you have any questions
are you trying to improve your credit because you are in the process of obtaining a loan and/or mortgage?
Are you raising the sale price by 3.5% or just giving 3.5%?Concession is common and legal. If you pay anything toward closing, you are helping the deal go through. You might negotiate a better sale price if you're paying toward the closing .. its a win-win situation for buyers and sellers, and for banks too, assuming there is an established equity in the house.Oh, and buyer will pay you back the difference of taxes on higher sale price in ratio to the concession percentage on the closing table, so you are not losing.
FHA is for Owner occupied properties; you can keep the FHA loan on the current property and obtain another FHA loan later on or move out of the property in case your work changed and you must move further distance for your job. This is also true if the size of the household increased and you must move to a bigger space to accommodate a bigger family size.
rates dropped much lower since you started this post; are you planning a cashout refi?
if you are legal on valid work/living visa, then I can advise you on lenders that do so. there are many foreigners and diplomats who live in NYC, and they are able to buy, you just need to work with a knowledgeable broker.
you can always contact me :) or a trusted brokera broker should not charge you any fees, and their job is to shop as many lenders as they can to get you the best deal that you can afford.rule of thumb: beware of spam online quotes! without really looking into your financials and debt and credit and location of property, its hard to give you a full picture
Joel is right, you must get the names on the title current, but depending on the lender, you might be able to start a parallel processes to obtain a pre-approval for first mortgage on the property conditioned to obtaining the title under the borrower's name (or an accepted legal document stating the estate status). a good attorney should advise you on the estate transfer process, and your broker should advise the lender that the closing is conditioned. Or you can just wait till the title is reflecting the names of the estate shareholders. I would suggest exploring both options together to save time and lock into the current low rates.
You should be able to obtain a loan if you can afford the property, even with low or no credit score. There are couple of attractive First Time Home Buyer programs that will enable you to do so. The programs I am familiar with will even enable you to obtain some sort of grant to pay down toward closing costs. Get in touch and I will advise you, or ask your lender for First Time Home Buyer in NY state