So I probably spelled that French phrase completely wrong but whatev. I only spent a wk in Paris and I was lucky if I was able to ask where I could get cooked meat.
Anywho, in all of this home buying stuff I found out that you can get an FHA (Federal Housing Administration) mortgage in any amount up to $650k. Yes...that's right. I just wrote a number that is more than a HALF MILLION DOLLARS.
Ok...for those who don't know, an FHA is a federally insured home loan that is most popularly characterized as having very low down-payment requirements. Conventional loans require at least 20% and FHA requires a min of 3.5%. Much more doable for those peeps who don't have a lot of cash on hand.
Which leads me to the subject of this post. If you can AFFORD a $650k home (with payments probably being around the $4K A MONTH range,) then shouldn't you be able to afford a conventional mortgage? Meaning, if you have proven that you have a stable income of at least $12K/month (I'm pretty sure housing can amount up to 30% of your monthly income) shouldn't you be able to save up that $130,000 down-payment?
Is it just me or is that really really strange?
