What are the disadvantages on an FHA loan?
I have been getting advice to check out FHA loans. I am a first time buyer looking to purchase a multi-family home in Hudson County New Jersey. (Jersey City) I am willing to live at the property, but cant afford the 20% most banks are requiring for the size of the loan which is around 600K. I have excellent credit and no debt. I understand there is something called a funding fee associated with this loan. I last heard that the funding fee is 1 3/4 % which is taken from the balance of the loan after your down payment. Then this amount is added to the total borrowed amount and spread over the term of the loan. Besides the funding fee what other things should I look out for with this type of loan?
