FHA Loan vs Conventional Loan - Which Loan Is Best?

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  • เผยแพร่เมื่อ 2 ม.ค. 2025

ความคิดเห็น • 66

  • @lizardgreen2121
    @lizardgreen2121 ปีที่แล้ว +48

    Closed June first with a fha loan. Credit score 650. Home price was 310,000. Seller covered 15,000 in closing cost. I paid 11,000 total and got the rate down to 5.4%.

    • @lizardgreen2121
      @lizardgreen2121 ปีที่แล้ว +1

      Total payment including insurance, taxes and pmi is 2450 a month

    • @acaciawilliams5098
      @acaciawilliams5098 ปีที่แล้ว +2

      Did you buy down your interest rate or seller?

    • @lizardgreen2121
      @lizardgreen2121 ปีที่แล้ว +5

      @@acaciawilliams5098 with what was left over of the 15k in concessions from the seller we bought the rate down. I didn’t personally pay for it. 11k is all I payed in total for the purchase of the home.

    • @BUCemAll32
      @BUCemAll32 ปีที่แล้ว

      What city is this ?

    • @lizardgreen2121
      @lizardgreen2121 ปีที่แล้ว +1

      @@BUCemAll32 San Antonio Texas

  • @Alessandro1983
    @Alessandro1983 ปีที่แล้ว +28

    Love the content. TH-cam is literally a university

    • @TR-vh1fi
      @TR-vh1fi ปีที่แล้ว +2

      What makes it even better is that there are amazing professors like Mr. Smith 😊 just found this channel and I'm loving it so far

  • @jayk502
    @jayk502 2 หลายเดือนก่อน +1

    These videos are just amazing! Very helpful to my notes. Subscribed & Liked!

    • @JebSmith
      @JebSmith  2 หลายเดือนก่อน

      Awesome, thank you!

  • @jepytv1692
    @jepytv1692 2 หลายเดือนก่อน +2

    Thank you Jeb. I learned a lot from this video. It's very educational.

    • @JebSmith
      @JebSmith  2 หลายเดือนก่อน

      Glad you enjoyed it!

  • @JebSmith
    @JebSmith  ปีที่แล้ว +2

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

  • @theasianjenn
    @theasianjenn ปีที่แล้ว +3

    This was super helpful! Thank you!

    • @jebsmithhb
      @jebsmithhb ปีที่แล้ว +1

      I'm glad to hear that you found the content useful, @theasianjenn! Thanks for your support and feel free to ask if you have any additional questions.

  • @jdonez8347
    @jdonez8347 ปีที่แล้ว +5

    35 y.o old male, making 50k yearly pre tax. Looking to make my first home purchase and I'm curious what would be the best route. Have 50k for down and 10 for closing. Would it be possible for someone in my situation to pull this off. Fico is 774... should I pull the trigger? I doubt I can afford a 250k home solo...just lost in the world of craziness

  • @JoudaniMaria
    @JoudaniMaria 10 หลายเดือนก่อน

    Great value in this video. Thanks you for making it.

  • @Psalms20A21
    @Psalms20A21 6 หลายเดือนก่อน

    Thank You, very informative & helpful! Will share.

  • @theresabell2492
    @theresabell2492 ปีที่แล้ว +1

    This is a great video thank u for sharing.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Thanks for watching

  • @billlagman9667
    @billlagman9667 3 หลายเดือนก่อน +1

    good info

    • @JebSmith
      @JebSmith  3 หลายเดือนก่อน

      Glad it was helpful!

  • @ceciliajennifer8384
    @ceciliajennifer8384 5 หลายเดือนก่อน

    @jebsmith thank you for the informative video. It helped us better understand both the options. What would you suggest for a someone with a good credit score and a 3% down. Also please let us know if refinancing from FHA to conventional in the future is something we need to have an eye on?

  • @erincarey6086
    @erincarey6086 ปีที่แล้ว +3

    Why don't you add the upfront mortgage insurance rate of 1.75% on the FHA to the effective rate? The loan rate is less on FHA than conventional but that's because you're paying that upfront fee, sort of like buying down a rate on conventional.
    You also failed to mention that PMI drops off on a conventional loan once the LTV reached 80% vs a FHA where you pay it until the loan pays off regardless of LTV

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      It's because the 1.75% is added to a loan amount and not to read interest rate therefore because nothing to do with the effective rate. That said it will reduce the amount of down payment you have in the transaction if you finance the 1.75% fee

    • @Games.Gadgets.Sports
      @Games.Gadgets.Sports ปีที่แล้ว

      Actually it's other way around. Pmi drops off after you pay off 20% of loan conventional it stays forever until house paid off or you refinance.

    • @angelinimartini
      @angelinimartini ปีที่แล้ว

      But MIP does drop off on an FHA loan depending on how much you put down at origination…

  • @EYE4Truth77
    @EYE4Truth77 22 วันที่ผ่านมา

    Hi thank you, 2 min into video you stated 680 score with the conventional loan however what is written says 680 score? Which is it?

    • @JebSmith
      @JebSmith  22 วันที่ผ่านมา

      That says the same thing? I'm confused. The minimum credit with conventional is 620 but some lenders may require higher due to overlays

  • @MaridalyBurgos
    @MaridalyBurgos 9 หลายเดือนก่อน +1

    Very good one

    • @JebSmith
      @JebSmith  9 หลายเดือนก่อน

      Thanks

  • @afrozaakther6274
    @afrozaakther6274 ปีที่แล้ว

    I’m scared how and where I start ectulley

  • @phatpham
    @phatpham ปีที่แล้ว +2

    Hi Jeb, great video as always! Quick question, would you recommend to still use FHA for someone with 700+ credit score and 20% down? Or at that point just do conventional?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +4

      Conventional would probably be best in this scenario but have a lender do a side by side comparison.

    • @phatpham
      @phatpham ปีที่แล้ว +1

      Thank you so much!

  • @Mr.SuperDuper-idk
    @Mr.SuperDuper-idk 9 หลายเดือนก่อน

    What’s a work around
    I just had to drop 22k on semi developed lot loan.
    Want to get a Permanent Manufactured on it. Only have Septic to further develop.

  • @tarequeahmed7605
    @tarequeahmed7605 ปีที่แล้ว

    I have a home equity loan. My monthky payment increased from $600 per month to $1688 per month. Do not know what to do. Should I sell, get new mortgage or hold on?

  • @sophielily2015
    @sophielily2015 3 หลายเดือนก่อน

    Thx!!🤓

  • @TheNVSK
    @TheNVSK ปีที่แล้ว +1

    Why don't you discuss USDA Rual Single Family Direct Loans?
    Can't make money in an expedient manner? Doesn't fit into your business model ?

  • @afrozaakther6274
    @afrozaakther6274 ปีที่แล้ว +1

    Hello I’m interested to buy house our both score 750 +

  • @altidareach5068
    @altidareach5068 ปีที่แล้ว +1

    Thanks Jeb! I learned a lot from your video. I believe conventional loan will be better for me. I am planing to buy a home. First time buyer, my credit score is 800 and I have no other debts. I paid off my car, student loan and no credit card balance ⚖️.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Nice.........Good stuff! Congrats!

  • @afrozaakther6274
    @afrozaakther6274 ปีที่แล้ว

    Give me some advise I’m living Long Island bayshore

  • @KAYTEEZIE
    @KAYTEEZIE ปีที่แล้ว +1

    Too fast and I’m a young espresso drinker 🤣

  • @Mr.SuperDuper-idk
    @Mr.SuperDuper-idk 9 หลายเดือนก่อน

    Yeah unless it’s “investment” or second property 😢

  • @miltonfisher9122
    @miltonfisher9122 ปีที่แล้ว

    If I get a fha loan after the first year can I transfer the debt to my business ? If so how ?

    • @JebSmith
      @JebSmith  ปีที่แล้ว +1

      No.........it will stay as an fha loan.

  • @dm8392
    @dm8392 5 หลายเดือนก่อน

    Hey Jeb, some one with a 760 credit score with only 5% down which would you say is the better option?

    • @JebSmith
      @JebSmith  5 หลายเดือนก่อน

      probably FHA but have a lender run a side by side comparison.

  • @lizzmcguire2095
    @lizzmcguire2095 ปีที่แล้ว +1

    Can I apply for a convectional and FHA loan at the same time? then, take the best option?

  • @anthonyd.jacksonjr.2139
    @anthonyd.jacksonjr.2139 ปีที่แล้ว +1

    You can put down 50% on a home with an FHA loan and STILL get PMI?! That's wild.

    • @angelinimartini
      @angelinimartini ปีที่แล้ว

      If you put down 10% at origination, MIP drops off at year 11 on an FHA.

  • @MarcotulioOrosco
    @MarcotulioOrosco หลายเดือนก่อน

    🎉🎉🎉

  • @afrozaakther6274
    @afrozaakther6274 ปีที่แล้ว

    Hi

  • @lonewolf1936
    @lonewolf1936 ปีที่แล้ว +4

    He said "let's say you make over 10k and ur debt is 4k" like the average person makes over 150k a year 🤣
    Bro you know damn well that 2023 in California makes 30k a year 🤣 gtfo