The 2025 FHA loan limits in Arkansas cap at $524k. With a 5% down payment on a $600k home, I’m facing a shortfall of $46k. Are there options for a piggyback loan with an FHA loan to cover this gap? I’m aware of the stricter requirements with conventional loans but am hoping to find a viable alternative under FHA.
Before you decide, I recommend speaking with a lender to compare the costs and benefits of FHA versus conventional loans.
Brett said:
Before you decide, I recommend speaking with a lender to compare the costs and benefits of FHA versus conventional loans.
I’ll definitely look into that. Thanks for the advice!
I found that the rates were similar between FHA and conventional loans when I was shopping for mortgages.
Keep in mind that some banks might require a credit score above 720 for conventional loans.
A $600k home in Arkansas must be quite large, maybe even luxury. Are you sure you need that much space or could you consider something more modest?
Francis said:
A $600k home in Arkansas must be quite large, maybe even luxury. Are you sure you need that much space or could you consider something more modest?
The homes I’m looking at are generally 2900-3100 sqft on sizable lots, mainly new construction. It’s more about the quality and features than sheer size.
It’s best to discuss your options with a local lender to get a clear understanding of what’s possible.
FHA loans can be expensive in terms of PMI, especially for higher loan amounts. It might be worthwhile exploring other financing options.
Emory said:
FHA loans can be expensive in terms of PMI, especially for higher loan amounts. It might be worthwhile exploring other financing options.
If the credit score is a limiting factor, it could be challenging to secure a conventional loan for such an amount.
@Riley
With a high loan amount and a low credit score, it’s risky to stretch financially. It’s better to aim for a more affordable property.
Emory said:
@Riley
With a high loan amount and a low credit score, it’s risky to stretch financially. It’s better to aim for a more affordable property.
It’s good to be cautious with such significant financial decisions.
Emory said:
FHA loans can be expensive in terms of PMI, especially for higher loan amounts. It might be worthwhile exploring other financing options.
In Arkansas, you can find excellent homes for significantly less than $600k. Consider lowering your budget to reduce financial strain.
@Peyton
I’m considering all options, including possibly adjusting my budget based on what’s feasible with my financing options.
FHA does not typically allow piggyback loans to cover loan limits. You may need to either increase your down payment or switch to a conventional loan.
Emerson said:
FHA does not typically allow piggyback loans to cover loan limits. You may need to either increase your down payment or switch to a conventional loan.
That clarifies a lot, thank you. I’ll need to reevaluate my options and possibly look into conventional loans.
@Birch
Consider speaking to a financial advisor to fully understand the implications of each type of loan.
Avoid FHA if possible for high-value homes due to the high costs of PMI and upfront fees. Conventional loans might offer better overall financial terms.