FHA Loan vs Conventional Loan - Which Loan Is Best?

[@lizardgreen2121]

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]

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

[@acaciawilliams5098]

Did you buy down your interest rate or seller?

[@lizardgreen2121]

@@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]

What city is this ?

[@lizardgreen2121]

@@BUCemAll32 San Antonio Texas

[@Alessandro1983]

Love the content. KZbin is literally a university

[@TR-vh1fi]

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]

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

[@JebSmith]

Awesome, thank you!

[@jepytv1692]

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

[@JebSmith]

Glad you enjoyed it!

[@jdonez8347]

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

[@theasianjenn]

This was super helpful! Thank you!

[@jebsmithhb]

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]

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

[@ceciliajennifer8384]

@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?

[@Psalms20A21]

Thank You, very informative & helpful! Will share.

[@phatpham]

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]

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

[@phatpham]

Thank you so much!

[@theresabell2492]

This is a great video thank u for sharing.

[@JebSmith]

Thanks for watching

[@JebSmith]

✅ - 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 - kzbin.info/www/bejne/mp7YdHZ5Zbx2mck

[@sophielily2015]

Thx!!🤓

[@billlagman9667]

good info

[@JebSmith]

Glad it was helpful!

[@KAYTEEZIE]

Too fast and I’m a young espresso drinker 🤣

[@MaridalyBurgos]

Very good one

[@JebSmith]

Thanks

[@altidareach5068]

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]

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

[@afrozaakther6274]

I’m scared how and where I start ectulley

[@EYE4Truth77]

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]

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

[@tarequeahmed7605]

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?

[@Mr.SuperDuper-idk]

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.

[@Mr.SuperDuper-idk]

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

[@StevenGonzalez-h5y]

West Lakes

[@lizzmcguire2095]

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

[@incomeGlitch]

yes

[@erincarey6086]

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]

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]

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]

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

[@afrozaakther6274]

Give me some advise I’m living Long Island bayshore

[@afrozaakther6274]

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

[@pulaslala6158]

Nice 😊

[@TheNVSK]

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 ?

[@miltonfisher9122]

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

[@JebSmith]

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

[@MarcotulioOrosco]

🎉🎉🎉

[@anthonyd.jacksonjr.2139]

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

[@angelinimartini]

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

[@dm8392]

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

[@JebSmith]

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

[@afrozaakther6274]

Hi

[@lonewolf1936]

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