FHA Loan vs Conventional Loan - Which Loan Is Best?

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  • เผยแพร่เมื่อ 28 ส.ค. 2024

ความคิดเห็น • 55

  • @lizardgreen2121
    @lizardgreen2121 ปีที่แล้ว +41

    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 +4

      @@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

      @@BUCemAll32 San Antonio Texas

  • @Alessandro1983
    @Alessandro1983 11 หลายเดือนก่อน +23

    Love the content. TH-cam is literally a university

    • @TR-vh1fi
      @TR-vh1fi 10 หลายเดือนก่อน +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

  • @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

  • @jdonez8347
    @jdonez8347 7 หลายเดือนก่อน +4

    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

  • @Psalms20A21
    @Psalms20A21 2 หลายเดือนก่อน

    Thank You, very informative & helpful! Will share.

  • @ceciliajennifer8384
    @ceciliajennifer8384 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?

  • @theasianjenn
    @theasianjenn 8 หลายเดือนก่อน +2

    This was super helpful! Thank you!

    • @LivingInHuntingtonBeachCA
      @LivingInHuntingtonBeachCA 8 หลายเดือนก่อน +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.

  • @JoudaniMaria
    @JoudaniMaria 6 หลายเดือนก่อน

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

  • @phatpham
    @phatpham ปีที่แล้ว +3

    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 +5

      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!

  • @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!

  • @theresabell2492
    @theresabell2492 ปีที่แล้ว +1

    This is a great video thank u for sharing.

    • @JebSmith
      @JebSmith  ปีที่แล้ว

      Thanks for watching

  • @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 10 หลายเดือนก่อน

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

  • @MaridalyBurgos
    @MaridalyBurgos 4 หลายเดือนก่อน +1

    Very good one

    • @JebSmith
      @JebSmith  4 หลายเดือนก่อน

      Thanks

  • @Mr.SuperDuper-idk
    @Mr.SuperDuper-idk 4 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?

  • @KAYTEEZIE
    @KAYTEEZIE 9 หลายเดือนก่อน +1

    Too fast and I’m a young espresso drinker 🤣

  • @Mr.SuperDuper-idk
    @Mr.SuperDuper-idk 4 หลายเดือนก่อน

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

  • @dm8392
    @dm8392 หลายเดือนก่อน

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

    • @JebSmith
      @JebSmith  หลายเดือนก่อน

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

  • @afrozaakther6274
    @afrozaakther6274 11 หลายเดือนก่อน

    I’m scared how and where I start ectulley

  • @afrozaakther6274
    @afrozaakther6274 11 หลายเดือนก่อน +1

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

  • @lizzmcguire2095
    @lizzmcguire2095 11 หลายเดือนก่อน +1

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

  • @afrozaakther6274
    @afrozaakther6274 11 หลายเดือนก่อน

    Give me some advise I’m living Long Island bayshore

  • @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 10 หลายเดือนก่อน

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

  • @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 11 หลายเดือนก่อน

    Hi

  • @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.

  • @lonewolf1936
    @lonewolf1936 10 หลายเดือนก่อน +3

    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