I was just notified by my mortgage broker that the FHA underwriter will approve my loan. The rate they are offering is 7.25% on 30 year fixed. The FHA loan program is the 203K program which is allowing me to buy the house for $170K and get an add'l amount (approx $90K) to remodel, total financing will be $253,600 (FHA max in my area). Closing costs on this loan is about $9,900 (includes 1% commission, 1% prepaid points, impounds, etc.). Considering my credit scores are Eq 620, TU 552 and Ex 556, is this a good deal??? Any experts out there?
oh yeah, I forgot to mention, I have an IRS lien (will be paid off at closing) and only 3% down as a gift. I assume FHA is the only way I can go...any input?
