Everything You Need to Know About FHA Mortgage Loans | Homespire Mortgage

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

Don’t miss out on future videos. and  if you have a burning mortgage related question,   leave it in the comments below, and maybe your  question will be featured in a future video.

Transcribed from video
Everything You Need to Know About FHA Mortgage Loans | Homespire Mortgage By Homespire Mortgage