Quote:
Originally Posted by 48Laws
No it's not. This is also recommended by many industry experts. The delinquency regarding FHA loans isn't as cut and dry as you make it. Again, PMI is to offset the lack of equity in a new home which is something lenders want to safeguard. I recommend 3-15% down and the rest for emergency funds. Why throw all your money into a liability anyway? Bad advice. Lol
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Quote:
Originally Posted by xtac
Why avoid FHA? 3.5% down even with MI, can be a great thing. I know people like to eliminate pmi, but especially if you can put the 20% that you would have used into a better investment or just have more cash on hand.
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...And less than 5 months later...
Quote:
FHA Said to Set Stage for Treasury Draw as Losses Mount
The Federal Housing Administration, faced with continuing losses from the housing bubble, will issue a financial analysis next week setting the stage for what could be its first draw from the U.S. Treasury in its 78-year history, according to three people briefed on the report.
http://www.bloomberg.com/news/2012-1...ses-mount.html
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Just as a I predicted. We're all on the hook for it. 48Laws simply gives horrible advice. FHA is a failed institution.
