FHA Bottom Line

[Nik Parks]

Hey guys, I have a question.

I'm brand new to REI. I want to buy my 1st house this year. I want to buy a multi family home with a FHA loan.

My question is, what is the absolute bottom line amount with a FHA loan (I know it varies depending on the price of the house).

Let's just say, for the sake of simplicity, that I find a fourplex for $200,000

The down payment is roughly 3.5%. In this case, it's $7,000

Apparently, there is an upfront PMI charge of 1.75%, which would be $3,500

And I believe there's an annual PMI payment of 1.25% of the original loan amount? Which would be $2,500.

Then there are, according to fha.com:

• Lender's origination fee
• Deposit verification fees
• Attorney's fees
• The appraisal fee and any inspection fees
• Lender's origination fee
• Cost of title insurance and title examination
• Document preparation (by a third party)
• Property survey
• Credit reports (actual costs)
• Transfer stamps, recording fees, and taxes
• Test and certification fees
• Home inspection fees up to $200

"Allowed in an FHA refinance loan are wire transfer fees, courier fees, reconveyance fees, and fees to payoff bills."

So what's the absolute bottom line here? If I'm looking at a $200,000 fourplex (again, for the sake of simplicity) how much money do I need to have?

I understand I have to pay the 1.75% upfront, but do I have to pay the 1.25% annual PMI payment upfront as well. By that, I mean does my first annual payment start on day 1? Would it be 3.5% + 1.75% + 1.25%?

Thank you so much for your help!

Nik

P.S. I live in NYC but because of the ridiculous prices here, I'm looking to invest elsewhere. I'm trying to find something that is affordable and that has a reasonable commute into the city for work.

Also, I understand some of the PMI fees have gone up. If my percentages are off, please let me know. Thanks again!