NEW FHA Loan Requirements 2024 - How much can you afford? - FHA Loan 2024

[@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 2024 - First Time Home Buyer - FHA Loan 2023 - kzbin.info/www/bejne/eXLTeH-IatppoJI

[@sweetnana23]

11:45

[@steviecoleman9260]

6 years ago I was able to buy my home making 13.00 an hour using the 1st time home buyers program. 3.5 interst rate, 720 credit score for a 90,000 townhouse, bedroom 1.5 bath, front back yard garage. Best decision I could of made for myself, now you can longer find this type of home in my state!! My mortgage is now most people's car note these days!!

[@reza2251]

Great for you 👏🏻 never sell it. Never sell it. Also your house is not an ATM. Good luck!

[@idkmybffjill9682]

I bought 5.5 years ago too. Bought a pos condo for $31k all cash, got through corona cheap because of this and now it’s worth around $80k. Between living for free and appreciation my life has changed drastically, about to buy house number 4

[@javierosorio5169]

Same here . In 2007 I got a conventional loan for 120,000 at 2.78% interest rate. I was making 13.50 a hour and a credit score of 635 . 4 bedroom 2.5 bath,brick home. My house payment is 1200 and that’s property taxes and insurance including.And nothing down!!!!! Only 1000 to title

[@TheChubbyd07]

@@javierosorio5169how the heck did you get those rates in 07? I bought my first home in 08 just months before the Great Recession, and the rates for conventional was 5.5%, and that was the lowest in decades.

[@changeoffocus1074]

Beautiful!!

[@papasmurfication]

takeaway: what you qualify for is not what you're actually able to afford. great video.

[@JebSmith]

Hello @papasmurfication, Exactly right! It's so crucial to consider all factors when determining what you can afford. Budgeting for additional costs like taxes, insurance, and maintenance is essential. I'm glad to hear you found the video valuable. Thanks for watching and sharing your takeaway!

[@maltpatriot4919]

When I bought my house the finance guy told me “with what you make, you can afford a much bigger home”. Told him I had no interest in being house poor……

[@lPOTCl]

Good idea if you bought in the last 4 years. If its like 5-10+ years ago you lost out on 100-200k but yeah who needs a bigger kitchen or bedroom for oess than $100 back then.

[@AngelEyes-xm7el]

And he would get a bigger amount if his cut .

[@KatrinaDancer]

​@@AngelEyes-xm7el Exactly!!!

[@jenniferh5667]

Good lord those mortgage prices are still outrageous. It’s pushing 3000 a month 😮. My area the average home price is almost 400,000. Prior to 2020 it was in the 200,000. And that was for a nice working class neighborhood. it sucks now 😢

[@mikedabeast-il4vr]

I have watched a handful of your videos through the last few months. I can honestly say I have a better understanding of the home buying process. You specifically explain each topic thoroughly and use great examples throughout each video. Definitely a great job for sure Jeb.👍🏻 Many thanks for making the process not so stressful. You are very professional for sure and I among many others who may consider buying a home for the first time enjoy the content you release. Again much thanks and always enjoy the informational videos!

[@JebSmith]

I really appreciate the feedback, much appreciated.

[@BABarracus6]

15:08 people need to consider utilities the city i live in has a ordinance against living in a home without running water. The cost of electricity varies throughout the year. Some one making 50k is probably taking home about 3115 a month after pay roll taxes plus a little more for those 3 paycheck months that happens twice a month year for bi weekly earners. They will be barely scraping by and a couple of emergencies will get them in to trouble. if some one is making 50k don't do the minimum down payment try to get to 10% or 20%

[@sageduff4747]

I’ve owned 3 homes. My first one made me house poor. I mortgaged 3x my gross annual salary. Never again. The next 2 homes I owned were only 2x my salary. It was much more comfortable for me.

[@Alxotaku]

I wish that were possible today I mean I guess the calculation

[@jendacanay9218]

Do you mean you mortgaged 300k first time if your gross annual income was 100k, for example?

[@9libertybell]

It's better to keep housing mortgages under 25%. My first property was 15% after tax pay. The budget margin allows freedom to travel and deal with additional obligations such as investment for retirement.

[@lPOTCl]

@@9libertybellthis guys got his eyes on the prize. I hope my one day i will have a salary to do the same.

[@marcelrodriguez2067]

@@9libertybell that is impossible for most people the way the market is now.

[@nyce.monique]

leaving a comment for the algorithm so this can be pushed to more people. thank you for breaking it down for those of us who are new to all of this!

[@JebSmith]

Thank you for your support, @nyce.monique! I really appreciate your comment. It's always my goal to make complex real estate topics more digestible for everyone, especially for those who are new to it. I'm glad you found the information helpful.

[@deborahheckstall1881]

It's a darn shame people can't afford what is basically a human right

[@syedali4299]

Millions of homes are bank owned or just no body is living there .. and millions of people at the same time are homeless or at least just looking for a starter home 🙄

[@etheareal]

Housing is not a basic right. Existence isn't even a basic right.

[@gigibarrett1777]

Right!! It’s crazy how I cant even buy a home to take care of my elderly father in but it cost 100xs a mortgage payment for him if he goes to assisted living or nursing home 💔

[@nzmanhdee6246]

@@etheareal lookup inalienable rights america was built upon

[@amp2193]

​@@nzmanhdee6246 "Life, Liberty and the pursuit of Happiness." No where does it say "free housing". Thanks for playing 😉

[@roadlife_ent]

As an immigrant and starting over in the USA your video is VERY educational on home/house buying. Appreciate you taking your time to educate us. 🙏🏿

[@JebSmith]

You're very welcome!!!

[@phreshfx]

Wish I had somewhere to go and start over

[@queenrulestheboard]

@@phreshfx I totally agree with that comment. I felt it 100% in my soul. I wish there was somewhere else to start over

[@ziyadahbirthwright5986]

For everyone who say they can't afford to buy a home but their rent payment is almost as high or as high as a mortgage payment, you cannot afford to not buy a home!

[@ladilondon1213]

I think many ppl have high debt a long with all that rent and or poor credit with it and don’t realize first time homebuyers programs are out there along with 203k, USDA, FHA, CONVENTIONAL loans and of course there is NACA AND HUD THAT HELPS PURCHASE HOMES AS WELL.

[@jimmydroid7838]

Sounds good on paper, keep in mind you still have to pay utilities, home insurance and hopefully the ceiling doesn't leak

[@AmandaElay]

Amazing content!! I’ve had several people break down the home buying process down to me. You are the first person who presented it in a way I could understand.

[@rvandoom]

As a 15 year loan officer “ BUYING “ is still better than “ RENTING!” Any-day! Rent in Florida the apartments one bedroom median nice is 1900 a month for a darn one ☝️ bedroom 600 sq ft

[@debrabradley5648]

I live in NJ paying $2450 monthly 🤦🏽‍♀️

[@rvandoom]

@@debrabradley5648 move to Florida

[@Plantsfaire]

Working on the goal of owning a home that I can afford. It may be a bit late for me as I am older and single with kids away in college now- I am inspired by these videos that explain the important details that's needed to purchasing using an FHA loan. I am appreciative of Jeb Smith's explanations , knowledgeable and with his voice that sounds very humble, makes it more easy to listen to, makes it easier to get engaged, thus ease to understand more. Thank you.

[@kittumiku]

Great content, no BS! Straight to the point

[@JebSmith]

Thanks for the support and appreciation, @kittumiku! I strive to deliver straightforward and valuable content. It's great to hear that you find it beneficial. Looking forward to sharing more quality content with you.

[@craig9217]

How can you leave off closing costs? That is another big chunk of money.

[@shanekafavorite2738]

Man….. when I tell you this was amazing for me. This is absolutely amazing. Thank you.

[@Anonymous12971]

Love the information you give out in videos but I feel like this applies to almost all states except for CA and NY. It'd be nice to see a video for people that live in areas that have high home prices in their area.

[@heididuncan601]

50k I wouldn't get a 200k home. We are looking for 100k.

[@bm4551]

@@heididuncan601 You could, if you put down a sizable down payment and maybe use it as a rental. I paid cash for my condo, now debating if I should sell and buy a duplex instead. My duplex would pay for itself, and I can live on one side.

[@phabloagr]

The downpayment isn’t an issue. The prob is the mortgage %. And I see no one talking about that.

[@AelleIti]

That is true. Often it isn't explained clearly why sending extra money to the principal is a good thing. You don't have to send 1k if you don't have it. Hell even matching the amount that is sent to the principal from your payment works. Remember the interest rate affects the principal balance. So if 200 is going to your principal, if you send 1 month's worth of principal payment on top you can knock 1 month off your loans time. This even works if you can only see extra money every other month. Send an extra $50 to your escrow account to keep it above the amount needed. The best 2 scenarios if you're not looking for a multi-family building is low interest/low payment and low payment high interest. If you're looking for a multi-family then high amount low interest can also work in that situation depending on the number of units.

[@DtrainB]

Not only interested rate it's the overpriced homes to. Home prices jump way to fast

[@joseC2013]

I get a feeling when affordability increases it will be a small window! So many waiting for lower rates. Lower rate environment will cause a spiral in housing prices (rise) which CPI will be measuring higher. Fed will have to adjust with credit tightening (AGAIN)and will raise rates. FEEEELS like a never ending cycle. Anyone else?

[@JebSmith]

Absolutely @joseC2013, it does seem like a perpetual cycle. It's a delicate balance with affordability, home prices, interest rates and inflation. It's crucial for potential homebuyers or investors to keep these cyclical patterns in mind when making decisions.

[@francineford-smith6264]

First time viewer and I have subscribed thank you for all these gems you are dropping🏆🏆🏆❤️ 19:30

[@Robbodiez]

Im told tge best thing you can do is save as much as possible and go multi family either duplex up to four plex then you can use the income from rents to help offset expenses but do your homework on whatever property you decide to purchase because you need yo have up to date everything that way your risk is minimal as possible if anything goes wrong always have a contingency fund for emergency

[@squattles1881]

North Fontana’s property taxes are 2% on new builds with a high HOA. It’s absolutely insane!

[@JebSmith]

Fontanta, CA?

[@squattles1881]

@@JebSmith Yes! Lennar and Land Sea Homes. And the Lennar homes you don’t get to pick your own cabinets and countertops. They pick everything except the floors.

[@acedia4453]

A mortgage payment should NEVER be more than 1/4 of you net monthly income. There is no buying a home on 50-75k in 2024.

[@thebatmanwholaughs219]

@@acedia4453 thought it was 1/3.

[@Toodaloonumber2]

Of course there is. Plenty of 150-300k houses all across the USA

[@thebatmanwholaughs219]

@@acedia4453 I think 65K and up is possible if you budget correctly and live within your means.

[@mir22v]

Thank you for running those numbers; very helpful!

[@JebSmith]

Glad it was helpful!

[@jalamela1480]

Pretty much 80-90% of America CANNOT afford to buy a house is California if you make 50-75k a year.

[@JebSmith]

While it's true that the cost of housing in California is significantly higher than the national average, opportunities for home ownership are still possible depending on the area of the state and lifestyle choices. Certain programs or first-time buyer advantages can also assist. Having said that, for many, balancing income with living costs is an ongoing challenge in pricier markets.

[@lPOTCl]

Cali is an expensive shitholeee. If you make that you can afford a home in about 45 other states that doesnt smell like sht

[@wilburfudd]

I can however I won’t. The only houses in my budget are smaller and a lot older than my current apartment, California is expensive but I don’t want to move. I’ll just save till I see a great deal then I’ll pounce on it and if it passes inspection then I’ll put in a solid offer ( everything is over priced so a quote on quote good deal might not be the best I can get ).

[@jalamela1480]

@@wilburfudd honestly, I believe something will eventually break I don’t know when, but I feel like it will because of what is happening politically and economically.

[@MrsRobinson518]

I’m in charlotte NC and the cheapest homes are starting at $400,000 which is crazy

[@11Toriko11]

as a loan officer I apricate video's like this that bring value and educate the buyers!

[@JebSmith]

Hi @11Toriko11, I'm really glad to hear you found value in my video! It's always encouraging when fellow professionals in the industry resonate with the content. Education is indeed the key to helping buyers navigate this journey. Thanks for the support!

[@11Toriko11]

Absolutely, and you have great content here, learning something myself!@@JebSmith

[@RobertBean-bf8og]

An excellent resource to those who want to make sound real property purchase decisions. Thank you for your time and expertise in guiding the potential buyer / seller of real property.

[@JebSmith]

Thank you, @RobertBean-bf8og. Your kind words really do mean a lot! Providing quality resources and guidance for potential buyers and sellers is a major priority for me. I'm very glad to hear that you find the information valuable. Your support makes all the difference. Happy property hunting!

[@mrivy1651]

Can you do a video for salary earners of $28,000-$35,000? With credit scores in the fair range?

[@jameshumphrey3425]

You’re better off renting unless you live in the Midwest

[@muthoni632]

Great information!

[@Love4puppies]

I cannot tell you how many lenders do not lnow that on FHA loans, MI falls off after 11 years if you put more than 10% down. I think it is because they assume that FHA loans are only for those who put less down. But i find that sometimes it makes sense to go FHA even with MI when putting putting more down if the rate is much better. Thanks for the video!

[@JebSmith]

Hi @nadineostroski9574, I couldn't agree more! Being aware of the various guidelines, especially in regards to FHA loans, can make a world of difference. It's indeed surprising how often this detail gets overlooked. As you've rightly pointed out, sometimes it does make sense to go for an FHA loan with MI considering the lower rate. Your understanding clearly shows your wisdom in this arena. I'm glad you found the video helpful. Thanks for your comment, it encourages me to make more informative content like this.

[@ConnieLeFan]

Does that MI premium drop off automatically after last required monthly payment, or only if the borrower is informed enough and attentive enough to remember to file some request to stop the automatic collection at the first qualifying payment?

[@Love4puppies]

​@@ConnieLeFanI had to request it by filling out a form on a conventional loan. But I am not sure if it works the same with FHA and VA. I would check with your servicer to see what you need to do. ( Not a lender) Good luck!

[@peacebeteal]

This just told me that I need to make more money 😂

[@Alamo927]

Same here 😅

[@Jesuseacuraepoder]

Same here

[@hopefulfilled9519]

Yep!

[@bm4551]

😂 Don’t we all need to make more money.

[@GioDudeTV]

This was one of the most informative videos I have ever seen! My apartment lease is up in May 2024 but with how things are looking with the housing market I might just stick it out for one more year and keep saving up! Hopefully 2025 the housing market isn’t too bad!

[@hotshotcharlie4619]

This video was beneficial for me as I am now beginning to take the steps towards purchasing my 1st home. As I have went from owning my own company and recently went back to a w2 position. But an a little unaware of how the market works thank you so much, for breaking it down.

[@imberrysandy]

I am researching to buy a home in the distant future. Your channel helps a lot! Thank you for this video!

[@MissDemeanorOG]

You are so helpful.

[@JebSmith]

Happy to help!

[@myriambarthelemy]

you're amazing thank you so much

[@MrRashansmusic]

Man I really appreciate your videos!

[@JebSmith]

Hi @MrRashansmusic, Thank you for your kind words! I'm thrilled to hear you find the videos helpful. Appreciate your support - it's viewers like you who keep me motivated to share all the real estate and mortgage tips. Stay tuned for more useful content!

[@veronicagreenlee3190]

Thank You Sooooo Much, Your Video Is Very Educational & Helpful 🙏🏽

[@hopefulfilled9519]

My husband and I are only placing his income when buying to be able to realistically afford a good mortgage amount (including taxes, insurance etc…)

[@jankeyarjune3008]

You so detailed thanks for educational video

[@JebSmith]

I'm glad you found the video educational and detailed, @jankeyarjune3008! I strive to provide helpful and thorough information to help make the real estate process more understandable. Thank you for your support and for taking the time to comment!

[@paulbunyan9436]

Maybe a manufactured home or one of those large sheds that they sell at Home Depot...

[@JebSmith]

Hi @paulbunyan9436, Thank you for watching the video and for your comment! You're absolutely right, both manufactured homes and large sheds can indeed make excellent cost-effective housing solutions. They are versatile, often quicker to construct, and greatly customizable. Additionally, they offer the advantage of lower costs in terms of maintenance and utilities. It all comes down to individual needs and budget. Keep sharing your thoughts and happy house hunting!

[@TracyH29]

You also must consider if you live in an area that gets tornadoes. You do not want to be in a mobile home if your in the path of a tornado.

[@mikaylahawkins674]

I would like to add that the W2 is more used to tell how the income is trending not to calculate current income. The paystub along with the w2 will be used or an employment verification to calculate current income, but a w2 alone is never used to calculate income but only to verify if your current income is trending up or down in comparison to your paystub. In all of my years in the mortgage industry (underwriting) I’ve never depended on the w2 for income calculation… maybe as a placeholder while I wait for paystubs, but never as an end all be all.

[@alijahshea7160]

Great info

[@sheffrespawnz7235]

Glad to see people can still aford a house with 50k you just need to save for a bigger downpayment.

[@JebSmith]

It's definitely possible, maybe not ideal in what you get but possible.

[@Ymcdaj]

Thank you

[@KAINGO_CRAZY]

what did you do to get that number off $135 for mortgage insurance? i thought you said that it was 1.75% of the fha loan so where does the the .55% come from? is that not using an fha loan?

[@charisechampion]

The average house in california is around mid 500,000 we need realistic point of view, I don't know where you living with a house that low its must be a shed in Iowa somewhere

[@LanternEnergy]

I think he was giving a probable scenario that isn’t solely representative of a particular state but an overall area. CA isn’t the sole focus or average or a good basis to base this scenario upon. It’s not relevant to you because you’re focused solely on you and you alone. It’s a realistic point of view CA, NY, TX and FL are outliers. There’s a reason you can go to GA and buy a mansion for 500k that would cost you 2X’s that in per se IL. The south overall is more representative of that price range, it wouldn’t be ideal to base this video solely on where the housing is most expensive. The average American salary is 45k

[@elmarespino6906]

Great information. Thanks and god bless you.

[@JebSmith]

I'm glad to hear that you found the information useful, @elmarespino6906! Your kind words and support are greatly appreciated. God bless you too! Always here to help with any real estate and mortgage lending advice you may need.

[@calvinmiller9992]

How do I get in touch with one of these mortgage po's?

[@calvinmiller9992]

Considering a cash out refinance looking for advice for our situation.

[@themoneyquarterback]

Just because you can qualify for the mortgage it doesn't mean you need to buy the property. I was making 55k and I bought my duplex for 150k because I knew I could pay the mortgage if I had a tenant or not.

[@JebSmith]

I 100% agree. It’s all about what you’re comfortable with based on your monthly budget…… just because you can do it doesn’t mean you should.

[@Ydnew51]

Got it. Good advice ❤❤❤

[@theresabell2492]

This is a great video.

[@JebSmith]

I'm glad you enjoyed the video, @theresabell2492! Your support means a lot to us. We will continue making content that is informative and helpful. Thanks for tuning in!

[@305vibesss]

Nice

[@Dregohard609]

Don’t you still have to pay PMI on an FHA & USDA?

[@LanternEnergy]

He spoke on that in the video

[@carolynniemann6934]

Great stuff! Thank you. 😎🤟

[@JebSmith]

Hi @carolynniemann6934! So glad to hear you're finding value in my content. Your support means a lot. Stay tuned for more updates!

[@rayofsunshine107h]

HI there. Great video! Question: So you pay up front mortgage insurance..AND still have to pay some each month? So if you put up 10% ...then i guess ehy you can stop after 11 yrs because you already paid the other years for most part up front....is this thinking correct?

[@manuelrodriguez9455]

Hey man, amazing video? Quick q - can you do a video on Down Payment Assistance Program?

[@JebSmith]

Unfortunately, it’s very difficult to talk about down payment assistance because it varies by location. It’s too hard to make a video that would appeal to the masses.

[@manuelrodriguez9455]

@@JebSmith thanks for the insight.

[@immimis46]

No hope for someone making $40k a year?

[@KAINGO_CRAZY]

yes but it would need to be a much cheaper home so probably 1 maybe 2 bedroom probably on the smaller side. you have to really play with the numbers and take into count that front end / back end information along with interest rates and make sure that you’re financially inside of the numbers that they require. mess with a few different housing prices to see what works but at the same time don’t go for what barely fits inside those numbers try to leave some room so that you’re not living paycheck to paycheck. trying to have that 10% down to avoid the mortgage insurance on an fha is also a major key to lower payments too.

[@immimis46]

@@KAINGO_CRAZY Thank you!

[@holleybrown5208]

I don't know what insurance you use here in lousiana our insurance went sky high 150 for a 1400 sf home the new one we are looking at insurance is going to be 250 which is crazy to me

[@JebSmith]

Hello @holleybrown5208, It sounds like you're facing some challenges with your insurance costs, which can certainly be frustrating. One of the variables that can affect insurance rates is the location. Another consideration would be the specifics of the home, such as age and build. It's always beneficial to shop around for insurance quotes to ensure you're getting the best possible rate. I appreciate you watching the video and sharing your thoughts. Wishing you all the best with your insurance search and future home!

[@MindYourBusiness1988]

Great video. Love the hair cut

[@JebSmith]

Hi @MindYourBusiness1988, thank you for your kind words and for taking the time to watch the video. I'm glad you enjoyed it and appreciate the compliment on the haircut! Always here to provide helpful content. Thanks again for your support.

[@witdagreeneyz]

How does student loan payments affect dti if your payments are $0 ?

[@witdagreeneyz]

I think I figured out an answer to my question. If your monthly payments are zero then they take .5% -1% (depending on the type of loan you’re applying for) of your student loan debt and divide it by 12 and that’s your monthly payment used for DTI. Somebody feel free to correct me if needed 😅

[@nathanielcoleman8195]

im worried i'll buy at something I can afford and then property tax increases moving me out of being able tot afford it

[@JebSmith]

Property tax increases can indeed strain your budget, but remember they're typically tied to the value of your home. If your home's value is going up, it means your investment is growing which is good news. Always budget for a slightly higher expense to have a buffer. You're making the right considerations ahead of time, which is a great first step!

[@clauvensdurace1717]

Any recommendations on companies that can help improve credit? Thanks!

[@sethmiller5413]

How about construction loans? Do you have any knowledge in that realm? How about a video if so.

[@chnkylvr6969]

Jeb its me in the future. Buying my first house. Interest rates went up!!!!!!

[@mynameismrjones]

Hey Jeb thanks for the video. At this 1:34 point you said the payment on the FHA loan would be less than conventional/w 3% down. How so?

[@JebSmith]

Hi @JAJ3RD4TH, good question. FHA loans often have lower interest rates compared to conventional loans with 3% down, which can mean a lower monthly payment. Additionally, while FHA loans require a mortgage insurance premium, you can roll this cost into your mortgage, which could make the monthly payments less costly than a conventional loan with private mortgage insurance. Finally, FHA loans are less risky for lenders, so they can offer more lenient terms.

[@mynameismrjones]

@@JebSmith 10-4 🫡 Thanks man.

[@ekbenny3939]

I have a 600 fico,10k down, can I get a loan or should I pack up and hit the streets of DTLA

[@JebSmith]

While a 600 Fico score isn't ideal, it's not impossible to get a home loan. However, it may come with higher interest rates. Also, having $10k for a down payment depends on the price of the property you're intending to buy. It's recommended to improve your credit score for better loan terms, but don't give up just yet. Consulting with a mortgage professional would be your best first step.

[@gigibarrett1777]

What if just your car payment is 800 a month and you make 75,000 a year?with a a 1500 a month mortgage right now

[@deasvail99]

Great informative video for first-time homebuyers. I thought about buying but now wonder if the, uh, nuclearzombiepocalypse is on the way and it will all be for naught!

[@JebSmith]

I think you're safe.............

[@SergioHernandez-ft9uv]

Yes you can get rid of Pmi as long your property appreciates 20 percent it can take 2 years 5 years it took me 2 years here in California

[@JebSmith]

That's true with every loan except FHA as I discuss in the video.

[@kuko5915]

Really great information, i want to buy a duplex and i am a little confused on the 75% usage of one side of income rent, if i make 72k a year could i get an fha loan with 3.5 % down payment with 470 dollars of debt a month for a 480k duplex that market rent for it is 1950 a month?

[@JebSmith]

Not sure about your question but you can use 75% of the market rent for the side of the duplex that you aren't living in and can add that towards your income to help you qualify. That make sense?

[@Oneof74million]

Do you still have to carry private home owners insurance

[@marytimbe3222]

Do you recommend going with rocket mortgage?

[@JebSmith]

No

[@fj_mtzz]

Are you able to do this breakdown on a VA loan?

[@saltyscrub3192]

Should i not bother looking at a house until im at 50k? Last year i was at 37k

[@treyjames1205]

The advice is 2.5 times your annual income. If you could find a decent place for 70-90k then do it.

[@G_Henri-ny]

keep wondering where are those $300,000 houses? not in usa for sure.

[@fernandomartinez-fh3of]

Does this apply to combine income?

[@JebSmith]

Yes, Fernando. Combined income can indeed be considered when applying for a mortgage or property purchase, especially for those applying as a couple or co-applicants. However, the specifics may vary depending on the lender's policies and the local laws.

[@briankier2189]

Also don’t forget that most banks and credit unions will not do a mortgage for less than 100k. Most lenders don’t want to do a mortgage that is under 100k since they would not make much off of it!

[@muthoni632]

Are property taxes paid monthly or annually?

[@brandonmack2702]

Do you have any videos for first time home buyers that filed for bankruptcy?

[@JebSmith]

Here you go - kzbin.info/www/bejne/a3KpcoWOerx8ias

[@Acamp1103]

Greetings Jeb. Great content for all of us interested in real estate. I've got a couple specific questions re: VA loans. I'm active duty and planning a purchase around October. 1) If I am due to promote 1 month after the closing date, with a $1k monthly salary bump, will this change the underwriting, or do they only look at 2 prior years? This promotion is guaranteed, not something I need to compete for. Additionally, what if my wife has just graduated and only has 4 months of paychecks at the time of closing? If she is employed at the time does underwriting count her future income based on the offer letter? 2) I have 2 other houses, one of which will have been rented 1.4 years with profitable cash flow. The other will likely have a rental contract signed at the time of closing on the new house, but will not have a history of rent because we will have just moved out of it. Is there some leeway for underwriters to consider this income or does the VA have strict rules against it? Cheers!

[@judyrogers8775]

Jeb may still answer here. But never forget we Realtors aren't licensed lenders. I recommend buyers - even if the purchase is not planned soon - visit with a mortgage broker recommended by your local Realtor (he/she will know if the lender is easy to work with, detail oriented, eager to communicate and actually close your deal when the time is right). A good lender will be happy to give you precise answers to these detailed questions. The relationship you build now and the deals you can make when you know your exact ability to borrow are worth the investment of time. Thanks for your military service and blessings as you pursue a home purchase.

[@Raec123]

I recently asked about keeping my current home and renting it out but after I buy another property & From what I understand for the rental income part, for VA, they will consider the income if you have the rental agreement contract, even if it’s new. As For your future promotion, they will use the current income as shown on your LES. *I’m not a lender. But recently contacted one and asked a bunch of questions

[@cinnaminstixx]

FHA has so many fees. Why chose that over conventional loan? You shouldn’t max out your budget and a 57% DTI sounds terrifying! These new FHA loans seem like they are setting people up for failure, allowing them to buy houses they truly can’t afford.

[@JebSmith]

Hi @cinnaminstixx, thank you for watching and sharing your thoughts! You raise some valuable points. It's true FHA loans come with a certain cost, as do most loan products. However, they can provide an opportunity for those who may not qualify for a conventional loan due to, let's say, a less-than-perfect credit score or inability to afford a large down payment. You're correct in saying that it's essential not to overstretch financial resources; budgeting wisely and understanding what one can comfortably afford is important for anyone considering purchasing a home. DTI ratios are one of the many factors that lenders look at. Many borrowers with higher DTIs still comfortably meet their financial obligations. But undoubtedly, solid financial planning is key. It's always best to look at the full picture and explore all the options. Your concerns are valid and thanks for prompting us to look at these factors more closely!

[@cinnaminstixx]

@@JebSmith I sort of understand what you’re trying to say, but realistically, for a person who has less than perfect credit and doesn’t have a large down payment, should they be buying a house? NO. These new loans are driving up the cost of houses and allowing people to overpay on houses they can’t afford. Now a person with good credit and downpayment has to compete on the market with someone with only 3.5% down and bad credit? Also, It cost at least 6% to sell your house, so with an FHA loan and only putting down 3.5% and the fees, a person is immediately upside down after purchasing if they tried to sale their house. So this loan is a trap for desperate people and it’s shocking that it is legal. Ten or more years ago, I would have supported FHA, but not with the new rules about PMI, fees, etc. These loans will contribute to another market crash. :(

[@TheChubbyd07]

@@cinnaminstixxBought my first home with FHA in 08 with zero down, and I had to pay PMI. I’m now on my second home with 250k in equity. You shouldn’t throw the baby out with bath water. Irresponsible people with make bad decisions regardless of FHA. How do you think the recession in 08 happened,

[@cinnaminstixx]

@@TheChubbyd07 yes the loan was originally designed to help. Now it is literally giving people loans that probably should not be buying a house. No savings, low credit score, extra fees and a permanent PMI that can only disappear with a refi is a recipe for disaster. You can’t compare a 2008 FHA to a 2024 FHA and say it’s a good loan.

[@marcelrodriguez2067]

​@@TheChubbyd07yea but you jumped at a recovering market so you simply got extremely lucky.

[@RWD1225]

lol how do you find a 250k home average price where i live is a million.... do i wish i lived in the states

[@SynthexS]

Interesting to see that in the examples a 250k home vs a 350k have not a big difference in the monthly payment,

[@JebSmith]

Hello @SynthexS, Absolutely! The monthly payment difference can often be less significant than many initially expect, especially when you take into account the length of the mortgage. It's an important aspect to consider when budgeting for a home. Thank you for your insightful observation and for taking the time to watch the video. I hope it was helpful!

[@bowler8]

If you have a standard loan on a property and still want a FHA loan on another property without selling the first, is this allowed?

[@JebSmith]

Yes, it is allowed but it has to make sense and you have to be able to qualify for it with having the other loan. FHA loans are primarily for primary residences, but if your situation changes, like job relocation or family size increase, you could potentially get a second FHA loan. Please consult with a loan officer to understand the eligibility criteria.

[@BronzeGirl]

I only have some credit card debt on 50k salary. I looking for 225k max Florida resident

[@JebSmith]

It could be possible, talk to a mortgage professional and have them run the numbers.

[@claytonkeates2614]

Great content. Exactly what I was looking for. Subscribed.

[@Detached_AZ]

I have a question about SS Income to qualify for a MTG. If my Gross is $1,900 and they take out $174.00 for Part B premiums, therefore my NET take home is $1,746.....Which number does a lender use? The gross or net take home? TY

[@FascinatingMaterial]

Question sir, A lender has me at 6.33 rate with a FHA loan putting 3.5 down, house price like 180.000 townhouse real nice I do not want to put down Emd what's my option I make close to the 75,000 yearly but we get bonuses based on performance, I want to make the best choice credit close 700/720, just subscribed, your a BEAST WITH THE KNOWLEDGE I NEED HELP, a friend of mine told me bout programs in Texas where U can get up to 30,000 down-payment assistance...Logic in this matter is needed

[@betterviews1226]

Plz tell us how to get rid of interest?? Is there any scheme that could finance without interest??

[@rayofsunshine107h]

Yikes...wish i knew it was 2% ....I had no idea...or else i would have done it then...😵‍💫was i under a rock not knowing this...and i could have easily sold mine 😮

[@StarOasis26]

So I need to have a W-2 for about 2 years to get approved for a FHA loan?

[@FadiGamingRP]

What's the best loan if I have the full amount but don't want to spend it all

[@JebSmith]

Probably conventional but have a lender give you side by side comparisons

[@Dipper964]

For FHA 3.5% down Construction loans, can you use the potential income for the main unit, if you build an ADU along with it; Making it a 2 unit build? Then live in the ADU.

[@marlenissoriano7500]

Can I purchase a two family home with an FHA loan? Having a credit score of 715? I am working on getting my credit higher but just want to see where an at so far

[@JebSmith]

Yes, you absolutely can. The FHA allows for the purchase of up to 4-unit properties as long as you're planning to live in one of the units. Your credit score of 715 should qualify for an FHA loan as their minimum required credit score tends to be around 580. Do keep in mind that the specific terms and rates can depend on additional factors, so it's best to talk to a mortgage lender for detailed information.

[@marlenissoriano7500]

@@JebSmith my total debt to income is around 2% I always keep it that way. The only concern I have is that I make 50k a year unfortunately so I’m scare this might put me for rejection

[@victoriathomas6006]

Quick question, was this example based off a 15 yr loan agreement or a 30 yr loan agreement? If this was for 15 yrs, could we see the numbers for a 30 yr loan agreement 🤝 📝

[@Bandit_X]

Not true about conventional because FHFA gives you a mortgage rate discount automatically if you qualify 1:36

[@JebSmith]

A discount? What discount is FHFA offering?

[@Bandit_X]

@@JebSmith a discount on the interest rate automatically if you qualify

[@Bandit_X]

@@JebSmith lits for first time home buyers using a conventional loan

[@chrisbahl6649]

buy a multi family, it will help your income to debt ratio