In this video, Edwin Oquendo, Branch Manager in our Orlando branch, talks us through the Pros and Cons of the FHA loan.
Hello, everyone. in today’s video, we are joined by edwin oquendo. he is the branch manager in our orlando branch. hi, edwin. hi, autumn. thanks so much for being here today. my pleasure. so, first and foremost, edwin, what is an fha loan? well, it’s an interesting question because most people actually don’t know
The answer to that. an fha loan is a mortgage insured by the federal housing administration, allowing down payments as low as 3.5%. fha loans are helpful for buyers with limited savings and/or lower credit scores. who is eligible? everyone is eligible. most people think that fha is only available for first-time
So, i want to go through the pros and the cons of an fha loan. so, let’s go ahead and start with the pros. a few of the pros are no income limits. higher income earners with credit problems, they can also qualify for fha financing with a minimal down payment. another pro is housing options. you can use an fha loan to buy
A multi-family, just as long as you live in the home for one year. wow. another pro with fha is that you are this is a huge benefit for clients that didn’t have the necessary credit score that they were looking for to get the best rate at the time. well, after a 210-day waiting period, they would be eligible
To reduce their interest rate. all right. so, let’s talk about the cons. some of the cons are lower loan limits. each year, the fha sets fha loan limits by county. this may impact how much home you can buy with an fha loan, especially in the high cost areas. another con is it’s limited to a primary residence only. you
Can live in as a primary residence. to finance a vacation or investment property, you’ll need to do a conventional loan. one other con is the private mortgage insurance or pmi, as most people call it. on fha, that is for the life of that fha loan. so, the only way that you would be able to get rid of that
Pmi is by refinancing at a later date. had an fha loan. my loan officer explained none of this to me, and i had no idea that i was paying pmi until i did some research on my own. yeah. when you’re doing the consultations for clients, it’s very important to break down understands what’s involved. edwin, thank you
So much for joining us today. my pleasure. happy to be here with you. if you’re in the kissimmee area and you need an excellent mortgage advisor, i will have edwin’s information linked below. if you like this video, please give it a thumbs up, and be sure to subscribe and hit that notification bell so you
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Transcribed from video
Everything You Need to Know About FHA Mortgage Loans | Homespire Mortgage By Homespire Mortgage