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

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  • @JebSmith
    @JebSmith  ปีที่แล้ว

    ✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral
    🏠 - First Time Home Buyer Course - www.becominghomewise.com
    ⏩ Watch This Next ⏩ - NEW FHA Loan Requirements 2023 - th-cam.com/video/dmuCCC0WCcg/w-d-xo.html

  • @michellebuckhoff1649
    @michellebuckhoff1649 ปีที่แล้ว +11

    FHA loans isn’t always low credit scores that people go with FHA loans for. In our case our DTI was high, but our credit scores are in the high 700’s this is because I have our twins student loans/parent plus loans. So, this put us in a high DTI of 51 percent, where on a conventional loan the max DTI is 42-45 percent. This makes it difficult for someone to qualify for a conventional loan. I call the student loan debt a ball and chain. It’s pretty sad that parents plus loan percentage rate is so high…

    • @JebSmith
      @JebSmith  ปีที่แล้ว +3

      Very true......FHA is way more lenient on DTI. I also agree on the student loans, it's a broken system.

  • @miamivlad
    @miamivlad ปีที่แล้ว +14

    Awesome info, ty! Maybe you could do a similar video for investors looking to purchase rental property and what loan options are available. Great stuff as always, love your channel!

    • @JebSmith
      @JebSmith  ปีที่แล้ว +2

      I'll see what I can come up with......this are difficult to do as you're making up credit scores, etc....therefore it only applies to a few.

    • @miamivlad
      @miamivlad ปีที่แล้ว

      @@JebSmith No worries then. This video saved me $612 annually as I removed my PMI bc omy house had A LOT of equity. Ty Jeb!

  • @SergeLynx89
    @SergeLynx89 ปีที่แล้ว +14

    Don’t forget the new changes to fha loan where those with good credit are gettin screwed over

    • @daveblackman816
      @daveblackman816 ปีที่แล้ว +5

      I was about to say this. That is the most cray thing I’ve heard in a while , but not surprised with these people in charge.

    • @JebSmith
      @JebSmith  ปีที่แล้ว +5

      That's for conventional loans and I'll be talking about it soon.

    • @ShayWilliam341
      @ShayWilliam341 ปีที่แล้ว +1

      You still get good interest rates with a higher credit score

    • @lezamac6
      @lezamac6 ปีที่แล้ว

      ​@@daveblackman816you can thank Trump

  • @gabrielpagan5713
    @gabrielpagan5713 ปีที่แล้ว +2

    great video. For the 3% conv vs 3.5 FHA, even tho the FHA payment is lower you are going to be about a 9k (FHA funding fee estimate) difference in equity? so does the conventional in that situation make more sense than the FHA at 3.5 even with the lower payment?

  • @ulises8483
    @ulises8483 ปีที่แล้ว +5

    It looks like Conventional will works best for someone with 775 credit score and able to put 5% down comfortably. I was trying to go for 20% but it is a lot.

  • @AlexOnBass
    @AlexOnBass ปีที่แล้ว +9

    With loan level adjustments coming in may, does a better score really mean a better rate?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +4

      The better your score, the better your rate........the loan level price adjustments will hit those with higher credit scores based on the current set up but you'll still end up with a better rate than those with lower scores.

  • @shaythompsonn
    @shaythompsonn ปีที่แล้ว +4

    First time homebuyer here and I have to say THANK YOU for this info you give it is helping me understand more and gather information to better myself for the home buying process .
    A quick funny story .. I follow a podcast called “The Educated Homebuyer “ and I never knew you were the same person ! I thought I was gathering amazing information from two separate sources this whole time 😅
    But Once again thank you for the content

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      🤣🤣🤣🤣

  • @Trust_In_Jesus82
    @Trust_In_Jesus82 ปีที่แล้ว +2

    Here I’m working getting excellent credit to get better approval, and the government wants to reward bad credit. Is the government talking to these banks then? Banks want bigger down payments as well. I guess we will see what comes with these changes.

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      🤦🏻‍♂️

  • @champagnecali7144
    @champagnecali7144 3 หลายเดือนก่อน +1

    Love this man so detailed so unbiased so much advice one way or another im always soaking up information and my wife doesn’t and it’s hard for me to explain lol I think this will be perfect for her I know it was for me and I really hope we can get the house we want and not just what’s there you know. Wish we would’ve been did it but looking at this I know it’s possible. Thanks I really appreciate it.

    • @JebSmith
      @JebSmith  3 หลายเดือนก่อน

      I appreciate that!

  • @Amberferchaud
    @Amberferchaud ปีที่แล้ว +2

    If fha maxes out in my area at $472,000 and my house is $500,000. Doesn't that mean I need to bring more than 3.5% to reach 500k? Was your scenario for an fha loan not limited at 472000? My other question - if I do live in an area limited at 472000. I put 28k down to get to 500k. Can I still finance the upfront PMi, since that would put me over the 472k? Or, do I have to pay the entire 1.75% at closing?

  • @robertbombace9153
    @robertbombace9153 4 หลายเดือนก่อน +1

    Great, Video jeb. Make things easy to understand.

  • @i12bnicesmith12
    @i12bnicesmith12 ปีที่แล้ว +2

    Thank you very much for sharing your knowledge and expertise

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Thanks for the support

  • @janinegenova9419
    @janinegenova9419 5 หลายเดือนก่อน +1

    What credit score? I was told housing credit score is different than regular credit score. Is that true ? Which one are you talking about .

    • @JebSmith
      @JebSmith  5 หลายเดือนก่อน

      The credit score required for a mortgage loan is not different from your regular credit score, they refer to the same thing. However, the minimum credit score for a mortgage loan may vary depending on the type of loan and the lender. These scores influence your loan terms and interest rates. So when we talk about credit scores in the context of housing, we are referring to your standard FICO score.

  • @dubiousjesse
    @dubiousjesse ปีที่แล้ว

    I did not hear anything about renting out the houses that we buy with these loans? Are these one time loans or can we keep using them? I want to buy a duplex that’s already rented on both sides and the 3.5 percent down would be a perfect amount for me.

  • @Korcari1987
    @Korcari1987 ปีที่แล้ว +1

    Good luck getting a 3% down conventional loan approved with a 620 credit score. Most time Fannie and Freddie will not approve it due to risk involved. Not to mention PMI will be double with conventional. FHA is a better loan option in regards to every aspect unless your score is over 680. If the home is in good shape sellers should be afraid of FHA loans.

    • @cavemanlefancy3373
      @cavemanlefancy3373 10 หลายเดือนก่อน +1

      Why would sellers not like fha?

    • @lr_3824
      @lr_3824 10 หลายเดือนก่อน

      @@cavemanlefancy3373from what I know, the closing period takes longer with FHA loans. You have to get an FHA appraisal (check the home to see if it’s in good shape) along with the other regular appraisal and home inspection what comes with buying a home. There’s also a few other factors, financial wise that could affect the seller I believe.

  • @noe6499
    @noe6499 ปีที่แล้ว +1

    How about VA? 🤔 I've read some people would rather go with FHA and Conventional instead.

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      VA is a better loan imo

  • @frankkelley5164
    @frankkelley5164 ปีที่แล้ว +2

    What about the new charge coming for people that put 15-20% down, With good credit.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Going to be talking about that soon

  • @kbrmotivational6149
    @kbrmotivational6149 ปีที่แล้ว +1

    Awesome video! great explanation and easy to understand! 👍🏾

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Glad it was helpful!

  • @jomo67coupe
    @jomo67coupe ปีที่แล้ว +2

    Can u do a fha construction loan video

  • @kimberlyallen2291
    @kimberlyallen2291 ปีที่แล้ว +1

    If you don't need an appraisal for home equity of 22% or higher, how will the lender know to automatically remove your PMI ?

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      once your balance gets to 78% then the lender will automatically remove the PMI.

  • @caaguilar82
    @caaguilar82 ปีที่แล้ว +2

    Great video. Thanks for the information.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Thank you.

  • @cristinarcardoso857
    @cristinarcardoso857 ปีที่แล้ว

    I already purchased a home a year ago and only put down a 3.5% down. I wished I would of known that putting down more money would of saved me money on a conventional loan.

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      Did your lender not go over that scenario?

    • @cameronwoodward5005
      @cameronwoodward5005 ปีที่แล้ว

      Of course they didn’t because that was the time of peak home buying.

  • @lauraleayoung6402
    @lauraleayoung6402 ปีที่แล้ว +4

    Paying $3500 per month for ANY mortgage is a HUGE payment out of a net. When you make $175,000 you are in a VERY HIGH tax bracket unless you have a basket full of kids. OVER 40% to taxes, California STATE and required INSURANCE payments which you get ZERO break on at that salary is VERY HIGH). UTILITIES in California are HUGE! Transportation costs (auto/auto insurance/license,registrations etc and gas or electric charges and maintenance on vehicle) is HIGH in California! Most people earning that kind of money have student loan debt/payments! If you are paying $3500/month for a home....HOW WILL YOU EAT, SAVE and maintain LIFE!

  • @kylefang3905
    @kylefang3905 ปีที่แล้ว

    Very good video my friend. Appreciate the breakdown, thorough explanation. Very informative and educational. 👌🏼

  • @the.homehunter
    @the.homehunter ปีที่แล้ว +1

    🔥 Love your video content!

  • @elisalozano4862
    @elisalozano4862 6 หลายเดือนก่อน +1

    So glad he mentioned CA home prices 😅

  • @Nalc-thugs83
    @Nalc-thugs83 2 ชั่วโมงที่ผ่านมา

    Hey Smith, can I get 4 unite construction FHA loan in Tennessee ?

  • @itsraheem
    @itsraheem ปีที่แล้ว

    This was a great video comparing the two loans

  • @melanie-judedawson5986
    @melanie-judedawson5986 ปีที่แล้ว

    I'm confused. I'm not understanding the difference between PMI/MIP with FHA loans versus conventional loans. I was under the impression that when you put 3.5 % down once your property reaches 20% equity you can refinance. But now it seems like you have to put 10% down with an FHA loan in order to refinance out of the mortgage insurance. So are you able to refinance out of mortgage insurance when you put down less than 10% on an FHA loan?

    • @CharlieBrown-nu2zb
      @CharlieBrown-nu2zb 2 หลายเดือนก่อน

      Private Mortgage Insurance (PMI) is for conventional financing while Mortgage Insurance Premium (MIP) is for FHA.
      Refinancing to get rid of PMI is easy, just wait till your equity is at least 20% of present home's value, whereas FHA won't let you off the hook; Iin this case just get a conventional refi.

  • @James-cd2ys
    @James-cd2ys ปีที่แล้ว +1

    Are you also a mortgage broker? Thanks for this info

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      I used to be back in the day.

  • @tomkyne1437
    @tomkyne1437 ปีที่แล้ว

    Great video! This was an awesome breakdown. I appreciate it. Do you think you could do one comparison with VA FHA and conventional with the same credit score also fha203k

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Thanks Tom........I'll see, it's very hard as the videos become much too long.

  • @pinkorganichorse
    @pinkorganichorse ปีที่แล้ว +2

    Can you give me those numbers with 20% down? 770 credit score.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Unfortunately not, check with a mortgage professional as there are more questions they need answered to give you accurate info.

  • @gregb3443
    @gregb3443 ปีที่แล้ว +2

    Are you the same person who hosts the TH-cam channel win the house you love?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      No.......that's Kyle.

  • @mikehernandez7462
    @mikehernandez7462 ปีที่แล้ว +2

    Last time I owned a home was 15 yrs ago.....am I qualified as first time home buyer??

    • @jaybartgis5148
      @jaybartgis5148 ปีที่แล้ว +1

      Yes

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Yes.

    • @catllionare
      @catllionare ปีที่แล้ว

      Yes because I think the qualifications just look at the past 3 years.

  • @foreverforever1978
    @foreverforever1978 ปีที่แล้ว

    Hi Jeb, my mother wants to buy a house, she only makes 25,000 yearly, Amerisave didnt approved her. Is there any lender that will loan her? Please help us.

  • @ladytracy46
    @ladytracy46 ปีที่แล้ว

    Their making it harder and harder for us that want to buy a home starting may 1st they are saying that we would be paying more for people with a higher credit score it’s crazy so what’s the since of trying to get our scores higher if that’s the case it’s getting so depressing now because this just shattered a lot of people’s dreams

    • @PrincessYadii
      @PrincessYadii ปีที่แล้ว

      People with low credit scores and minimal down payments have dreams too....

    • @ladytracy46
      @ladytracy46 ปีที่แล้ว

      @Yadira J absolutely my score ain't all that trust me but i did work hard to get it to where i had a possible but its just crazy how they can up the ante all of a sudden the Government is so crooked smh its like they dont care

  • @miguelm3031
    @miguelm3031 ปีที่แล้ว +1

    Great video 🙏🏽

  • @Divyv520
    @Divyv520 7 หลายเดือนก่อน

    Hey Jeb , really nice video ! I was wondering if I could help you with more Quality Editing in your videos and also make a highly engaging Thumbnail and also help you with the overall youtube strategy and growth ! Pls let me know what do you think ?

  • @Anna-qz6xw
    @Anna-qz6xw ปีที่แล้ว +6

    Can you please make a video about 12 month bank statement program for self employed people. Thank you!

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      I'll see what I can come up with.

    • @ShagawabJudah
      @ShagawabJudah ปีที่แล้ว

      @anna0630 is that when you don’t have proof of income so you use your bank statements?

    • @Anna-qz6xw
      @Anna-qz6xw ปีที่แล้ว

      @@ShagawabJudah yes, when you don’t have much on personal tax returns but your business is doing well, for example. In our case, it is a new business with 1 year of tax returns (but they require 2 for fha/conventional).

    • @thevlogspotwithyolanda345
      @thevlogspotwithyolanda345 ปีที่แล้ว

      @clarencemurray4281 Going through this process now. The bank doesn't count all of your income from the bank statements. The one I'm using only counts 50-70% of those total of 12 months of income. For instance if your statements are $50,000 they will only use $25,000 (50%)... I had to show proof with invoices of cash deposits. Also, how much you have in reserves/savings. Credit scores have to be over 680. The list goes on and on 😅 I hope this helps.

    • @Anna-qz6xw
      @Anna-qz6xw ปีที่แล้ว +1

      @@thevlogspotwithyolanda345 I agree too much hustle. I gave up on that idea when our loan officer told us the rate was going to be much higher than for conventional. And 20% down required. We decided to wait till next years tax returns. But then the realtor persuaded us to try the builders financing and we got approved for conventional by both builders, Horton and Lennar (with 1 year of tax returns). We tried just in case (because it was same inquiry) to apply at local credit union too. Our loan officer said we would probably be approved too for conventional but asked for too many things so we gave up.
      Basically they all asked us to link bank accounts. It was optional but we did we did ( personal and business), and were approved based on the total amounts. Our last year personal income wasn’t even that much, so the ratio was still pretty tight and the loan amount wasn’t generous.

  • @Hectormatos22
    @Hectormatos22 ปีที่แล้ว

    How fast can I ask for an appraisal after buying the house to remove the PMI in the conventional?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      Most lenders will require you to have the loan for a year before removing PMI but you can get an appraisal as soon as you'd like.

    • @Hectormatos22
      @Hectormatos22 ปีที่แล้ว

      @@JebSmith Thanks!

  • @lauraleayoung6402
    @lauraleayoung6402 ปีที่แล้ว +1

    Please STOP with you can always refinance! You will still have to qualify and it WILL COSTS TO REFINANCE! 11 years of Mortgage Insurance is A LOT!

    • @Jack-Surreal_Panes
      @Jack-Surreal_Panes ปีที่แล้ว

      I was so happy the month Ditech said my PMI is over. Thunk it took like 13 years for it to fully go away.

  • @venturabushcraft5916
    @venturabushcraft5916 ปีที่แล้ว

    Do you have any advice for veterans and VA loans brother? Thank you.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Yes......See this video. th-cam.com/video/vkK-7lHC6lE/w-d-xo.html

  • @05rg6400
    @05rg6400 ปีที่แล้ว +3

    Really wanted to see 20 percent down comparison

    • @JebSmith
      @JebSmith  ปีที่แล้ว +4

      Most people with 20% down aren't doing FHA

    • @eliubfj
      @eliubfj 11 หลายเดือนก่อน

      I really was looking forward to that as well, We want to know if the extra savings pay off!

  • @movewithladyv818
    @movewithladyv818 ปีที่แล้ว

    Heyyy Jeb!!! Love your videos and of course I am subscribed!!! I am a Maryland resident, but I wonder if you could shed some light on something for me...Why is the FHA wait time after filing much longer for a Chapter 13 Bankruptcy (6 YEARS) than it is for a Chapter 7 (2 YEARS)??? It kind of feels like you actually get penalized for going through a 5 year repayment plan satisfying some of your debt vs a chapter 7 where you just get to wipe all of your debt away.

  • @Jennifr1966
    @Jennifr1966 ปีที่แล้ว

    @JebSmith what happened to your friend (house value went crazy high), that won't happen again, right?????

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      I'm confused, what are we talking about?

  • @jomo67coupe
    @jomo67coupe ปีที่แล้ว

    When did conventional go to 3% down and 620 credit score?

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      It doesn't......Conventional will do as low as a 620 and it will also do 3% down.

  • @i12bnicesmith12
    @i12bnicesmith12 ปีที่แล้ว

    I need help in refinancing. I just purchased a home on December 6, 2022 and I would like to get it refinanced to lower my interest rate and have a lot and monthly mortgage that is comfortable for myself and my husband. Can you help me in any area direct me?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      yes, but if you bought in 12/22 then it may be tough to save any money by refinancing, fyi. Go to jebsmith.net/referral and I'll connect you with a mortgage professional.

    • @i12bnicesmith12
      @i12bnicesmith12 ปีที่แล้ว

      @@JebSmith I really want to thank you very much for your reply or my question. I will definitely go ahead with the referral that you stated.

  • @okiebaba
    @okiebaba 8 หลายเดือนก่อน

    Great info but your videography makes me feel like you are right in my face.

    • @JebSmith
      @JebSmith  8 หลายเดือนก่อน

      Hi @okiebaba! I appreciate your input and am glad you found the information useful. I'll definitely take note of your feedback about the closeness of the videography for future videos. We strive to make the viewing experience as comfortable as possible for all our viewers. Thanks so much for watching and for your helpful comment!

  • @robertnguyen2025
    @robertnguyen2025 ปีที่แล้ว

    Omg. No way..500k fha loans ..after 30 years you will pay 3.8 millions ? Good lord..major rio.iff from the bank at the clst of us hard working oeople .

  • @marjoriehamlin6204
    @marjoriehamlin6204 6 หลายเดือนก่อน

    Great

  • @christianlopez6148
    @christianlopez6148 ปีที่แล้ว +1

    Thank you

  • @dinkg.mariam4279
    @dinkg.mariam4279 ปีที่แล้ว

    This is not true in this market time if you dont pay 20% down tthe house market price high

  • @alexsviewscope3873
    @alexsviewscope3873 ปีที่แล้ว

    If you're using a FHA loan does it matter how old the house is?

  • @BEARDED_VATO
    @BEARDED_VATO ปีที่แล้ว

    Do both have pmi? I might ve missed that part!

    • @JebSmith
      @JebSmith  ปีที่แล้ว +2

      On FHA yes, on conventional only when you put less than 20% down.

  • @Beautifool-og1lo
    @Beautifool-og1lo 3 วันที่ผ่านมา

    I need phone telephonic of this titled discussion?
    &

  • @christianlopez6148
    @christianlopez6148 ปีที่แล้ว +1

  • @asoggyburger479
    @asoggyburger479 ปีที่แล้ว +2

    This information is a bit misleading. You’re failing to address the amortization schedule and how the mortgage and interest paid as a whole looks. You’re like a used car salesman, selling based on the monthly payment, not how much money is paid over the life of the loan for interest and PMI with the FHA vs just interest on the conventional. Long term, conventional is the best option. Do not entertain FHA loans. If you can’t afford conventional, wait, you’re not ready. Don’t buy based on the market, buy when you’re ready and do it the right way. 20% down 15 year fixed, and conventional.

  • @lauraleayoung6402
    @lauraleayoung6402 ปีที่แล้ว

    What percentage of people can afford a monthly payment of $3500 plus! VERY VERY FEW! Even if you have 20% down and a good monthly income...MOST are priced OUT OF THE MARKET!

    • @PrincezMichelle1
      @PrincezMichelle1 ปีที่แล้ว +1

      My husband and I pay $2000+ in rent/utilities and $1600+ in daycare... I don't know if we are getting closer to even try to get a house...😢

  • @asoggyburger479
    @asoggyburger479 ปีที่แล้ว

    Biggest takeaway, don’t live in California.

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      Where you should live instead?

    • @asoggyburger479
      @asoggyburger479 ปีที่แล้ว

      @@JebSmith This is my opinion obviously and there’s really no perfect answer. But me personally, I would move if I couldn’t afford to buy in a particular city/state. Live where the cost of living is reasonable and where the potential for growing your wealth has a better outlook. Why buy an $800k property out there when you could get the same somewhere else for $275k. Personally I’d be willing to sacrifice where I live to grow financially. Granted the value of homes may appreciate at different rates, but I’m looking for financial freedom and passive income. That goal can be reached sooner if you look outside of California and some of these other cities with ridiculous costs of living.

  • @rnt45t1
    @rnt45t1 ปีที่แล้ว +21

    Talk about Brandon screwing everyone with good credit.

    • @jesse_-
      @jesse_- ปีที่แล้ว

      Obama did the same. Made it so credit card companies can’t ding people with late fees and over the limit fees, which made having credit card payments a whole lot more expensive for people that had excellent credit. Democrats love to supplement the irresponsible with people that try much harder in life. Every time you turn around, democrats are punishing the people that have it together, to supplement others. At the same time, the democrats will vote for tax loopholes that help the rich. If you are middle class or upper middle class, and you vote democrat, you’re not intelligent.

    • @aaronoetting9129
      @aaronoetting9129 ปีที่แล้ว +1

      Who is Brandon?

    • @Dragon228833
      @Dragon228833 ปีที่แล้ว +2

      @@aaronoetting9129think he’s talking about Joe Biden. No idea where this conservative Brandon joke came from

    • @MikeG.666
      @MikeG.666 ปีที่แล้ว

      @Dragon228833 A Nascar guy, Brandon something, won a race and was getting interviewed after. Crowd was chanting Fxck Joe Biden in the background. Interviewer said, listen to
      them, they are saying Let's Go Brandon. Obviously that's not what they were saying.

    • @ShayWilliam341
      @ShayWilliam341 ปีที่แล้ว +2

      The man name is joe Biden y’all be tripping

  • @lauraleayoung6402
    @lauraleayoung6402 ปีที่แล้ว

    NO ONE SHOULD BUY at these prices and INTEREST! TELL People they are CAPPED on IRS write-offs too!

  • @dubiousjesse
    @dubiousjesse ปีที่แล้ว

    I did not hear anything about renting out the houses that we buy with these loans? Are these one time loans or can we keep using them? I want to buy a duplex that’s already rented on both sides and the 3.5 percent down would be a perfect amount for me.