Comparing Monthly Payments on FHA vs Conventional Loan - First Time Home Buyer

Are you a first time home buyer buying a home with a minimal down payment and trying to decide between a FHA Loan and a Conventional Loan? Which is better FHA or Conventional loan? Which offers a lower payment with lower credit scores? Which offers a lower payment at higher credit scores? In this video, I go over fha vs conventional and provide examples of monthly payment when putting 3.5% down using an FHA loan vs putting 5% down using a conventional loan at various credit scores and why you shouldn’t shy away from an fha loan just because of the mortgage insurance.

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What is a fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.

FHA loan 2021 requirements

✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 43%. (Actually you can go much higher than this)
✅The home must be the borrower's primary residence.
✅Borrower must have steady income and proof of employment.

FHA Videos You May Find Helpful:

➡NEW FHA Loan Requirements - First Time Home Buyer - FHA Loan 2021 - https://youtu.be/JwGB0CEZOww
➡How to calcuate PMI on a FHA Loan - How to get rid of PMI - FHA Loan 2020 - https://youtu.be/1UDea_zyhqM
➡FHA Loan Qualifications - First Time Home Buyer - FHA Loan 2020 - https://youtu.be/1SC6WgAJ2yk
➡FHA Pros and Cons - First Time Home Buyer - FHA Loan 2020 - https://youtu.be/fOWjRGQmKDM
➡Buying a home using FHA - First Time Home Buyer - FHA Loan 2020 - https://youtu.be/8KCzd8GPH_w

What is a conventional loan? A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower. Conventional loans are much more common than government-backed financing.

Conventional loan requirements 2021:

✅FICO® score at least 620
✅3% minimal down payment required
✅MIP (Mortgage Insurance Premium ) is required when putting less than 20% down.
✅Debt-to-Income Ratio less than 36%. (Actually you can go much higher than this)
✅The home can be a primary residence, second home or investment property
✅Borrower must have steady income and proof of employment.
✅Assets may be required at closing.

Home Buying Videos You May Find Helpful:

➡Conventional Loan Requirements 2021- First Time Home Buyer - https://youtu.be/tBn8u4AYVeg
➡HOW TO GET APPROVED FOR A HOME LOAN - First Time Home Buyer - https://youtu.be/K3_JTAMhhi4
➡5 Most IMPORTANT Steps to writing an offer on a house - First Time Home Buyer - https://youtu.be/Eskq9g_9sOo
➡ Buying Real Estate in a CRAZY Market - https://youtu.be/WLH0UlGmD9U
➡Step by Step Process of Buying a House in 2020 - https://youtu.be/myJ1h0ykhts
➡Do I get my deposit back if I cancel escrow? - https://youtu.be/0RMy9iNTu54
➡What Stays when buying or selling a house? - https://youtu.be/XH6c9-omN24
➡Appraisal vs Home Inspection - https://youtu.be/cwjokWbr1Go
After watching this video, which do you believe is better? Fha or conventional?

Also, what are your thoughts on the housing market 2021 and the housing market 2021 california?, Do you believe you should be buying a home this year or if now is the best time to side on the sidelines and wait for a housing crash and prices to drop?

Do you believe a house market crash 2021 or real estate bubble will happen? If so, why? What are your thoughts on the Orange County real estate market and the potential real estate crash for orange county real estate?

Jeb Smith (Huntington Beach Realtor/orange county real estate)
DRE #01407449
Coldwell Banker Realty
I N S T A G R A M ➳ https://www.instagram.com/jebsmith

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Видео Comparing Monthly Payments on FHA vs Conventional Loan - First Time Home Buyer канала Jeb Smith