How To Buy a House in 2022 With an FHA Mortgage

#HousingMarket2022 #RealEstate #FHA

Today we’re going to be talking about how to buy a house with an fha mortgage okay so first of all we got to clear up some of the misconceptions because there are a lot of misconceptions about an fha mortgage so number one do you have to be a first-time homebuyer no no you do not are there income limits on fha no no there are not so the reason this misconception

Exists is because a lot of down payment assistance programs are tied to fha and those down payment assistance programs have minimum uh credit scores they can have you know uh you have to make less than xyz you have to be a first-time home buyer but that’s not fha that is the down payment assistance program so i want to be really clear on that so no you don’t have

To be a first-time homebuyer you can make a million bucks a year and do an fha loan no joke okay now the next thing people ask is they go well wait why would you want to do an fha loan there’s some really cool things you can do with fha now the first and most obvious reason that i as a lender will use fha is if your credit is under 700 okay and not always we’ll go

Fha but here’s the deal in terms of interest rates fha is not as aggressive with credit scores so if you have a lower credit score they’re not going to whack you as hard on the rate whereas with conventional they are so in those 620 630 640 scores often what we’ll see is that the fha monthly mortgage payments lower than conventional because on conventional you’re

Going to get knocked with the mortgage insurance as well as the interest rate okay now the other thing with fha is fha is as little as three and a half percent down now one of the very cool things with fha that we don’t talk about enough is that you can buy a multi-unit with fha with three and a half percent down no joke now the three unit and four units have to

Pass a certain test but the two units don’t so a two unit fha can be super easy to do really easy so for all my little house hackers out there fha is a really good program okay um i like fha like what i used it a lot for is so you’ll have like the conforming limits so if the conforming loan amount is 647 there’s certain parts of the country where the fha limits

Higher and if that fha limits higher you can buy like a 900 000 house or an 800 000 house with three and a half percent down which in certain situations you can’t with conventional so fha can be a really good way to get your foot in the door um on a house that’s pretty expensive with a lower down payment so it’s a very great program if the lender you’re working

With knows how to utilize it and also works with conventional as well like that’s the thing like if a lender is saying you have to do fha fha only you always want to go what about conventional and if a lender is saying you have to do conventional conventional only you want to say what about fha you always want to make sure you’re working with a lender that’s looking

At both stories okay because one may benefit you a lot more than the other so very important okay so we covered the misconceptions we covered that there’s some cool options for fha and the down payment is three and a half percent okay um now the first step to buying a house with an fha mortgage is getting pre-approved by a lender now i would strongly suggest

You get fully underwritten by that lender and i have videos about that process so what that means is that your file they’ve done all the documentation it’s been through desktop underwriting which is the computer underwriting and an actual underwriter has reviewed it as well i think that’s so critical because it makes you stronger when you’re writing offers now i’m

Licensed in 48 states i’m happy to help you with your loan i’m everywhere but rhode island in utah we fully underwrite every pre-approval okay so my phone number guys this is my cell 707-478-0637 i will always call you back as quickly as possible the latest it’s ever been is 24 hours seriously we want to help okay so you’re going to get pre-approved with the lender

And you’re going well wait should i talk to a real estate agent first no absolutely not no because here’s the thing you need to know what you qualify for the last thing you want to do is start shopping with the real estate agent then fall in love with the house go to get qualified and you don’t qualify that would suck and sometimes people do that for six nine 12

Months they never get qualified because the real estate agent never pushes them to they spend all these hours looking at houses and they never qualified okay we don’t waste time you guys are on this channel to get educated so step number one get pre-approved okay now here’s the thing after you’re fully underwritten i always do like half an hour to an hour on the

Phone with the client i say get on my calendar let’s do it um that’s a good time to ask is fha the right option should i be looking at conventional why is fha better always check okay it’s very important that you always check so you’ve decided to go fha cool next step the real estate agent guys you need to pick a real estate agent that’s positive about fha there

Are some real estate agents that hate fha like we’ll probably have like at least three comments in this video where they’ll be like you can never get an offer accepted with fha guys i’ve heard the same stuff about va for years and it’s you need someone who’s positive about it people who understand fha and are positive about it they can help you get the house if

The lenders if excuse me if the real estate agent’s afraid of it or they’re negative about it that’s what they’re going to show the listing agent they’re going to show fear and that there’s something wrong there’s nothing wrong if you’re a fully underwritten fha offer you are strong you are strong so know that and don’t put up with a real estate agent that’s making

You feel lesser than oh my god you’re putting three and a half percent down it’s not a crime like in many cases it’s smart money management especially when you start talking about multi-units so really a positive proactive real estate agent now do they need a ton of experience experience always helps like i love having people real estate agents that know the

Market inside and out know what will work no it won’t work and has the network connections within the real estate market to make it work that’s ideal that’s not always what you get so if you have someone who’s newer that can be okay as long as they’re positive and they want to learn i as a lender i can work with that all day long you know you take a strong lender

You take a new agent you take positivity right and that gets you what you want the house okay so really important to know that now the house oh my gosh you’ve heard so many rumors like fha the house has to be perfect right no it doesn’t have to be perfect so let’s talk about the requirements for fha the house has to be an average or better condition so what does

That mean what would be average average would be like maybe the house is dated right like it might be a little dirty the walls are scuffed that’s average okay below average would be let’s say there’s no flooring let’s say that they punched holes through all the walls that’s not normal let’s say that they ripped the doors off there’s no kitchen there’s no plumbing

That’s below average okay those are pretty dramatic right how many houses do you look at with all of that now sometimes someone who doesn’t know fha is going to say oh well they need the pest report that is not a requirement of an fha mortgage we do not need the pest report i the lender will order an appraisal there’s no fha inspection there’s no fha pest report

I order the appraisal it’s just like if i order an appraisal on conventional the house has to be an average or better just like conventional the few things that fha does that’s extra okay is they make sure the house has a stove conventional does that too actually they make sure the heater works are you guys ready for the next one this one’s a real doozy i hope the

House has this they make sure the house has hot water i know that’s it seriously that’s it the house needs a stove a heater and hot water and it has to be an average or better condition it’s not a big deal it’s not a big deal but what’s happened in the past is like a real estate agent may have worked with a lender that didn’t really know fha maybe they just got

A bad appraiser you can get a bad appraiser with conventional you can get a bad appraiser with jumbo you can get a bad appraiser with va and you can get a bad appraiser with fha so sometimes they’ll think it’s the loan program when in fact it’s just they got a bad appraiser so it’s really important to know that the house doesn’t have to be perfect it doesn’t have

To be totally updated it just has to be an average or better condition okay really important now the next thing people ask is well fha takes longer to close right no it really doesn’t there’s nothing that takes longer with fha you know maybe back in the day it took longer before technology but now we have everything so dialed in it’s electronic it’s boom boom

Boom boom boom also we fully underwrite everything so that’s already done so no you can totally close an fha loan in under 30 days under 25 days depending on the market 20 okay seriously fha is just as fast as conventional because technology has taken some of the documents that used to be more work and it’s made it easy really important to know so no it does not

Take longer no the house does not have to be perfect no you don’t have to be a first-time homebuyer it’s a great way to get in the market with a limited down payment okay so that’s very important now one last thing that i want to talk to you guys about that i think is important to note if you’re thinking about fha i think we’re going to start seeing opportunities

Across the country with houses that are in lesser than perfect condition and fha has a really great loan called an fha 203k which is a renovation loan so if you’re looking at a house and you’re like oh shoot jen it’s below average condition the flooring is ripped out you know they did take the sink oh my god they did take the kitchen i thought you were joking this

Stuff happens there is a renovation loan that you can do with fha which is still three and a half percent and you can fix up the house so personally i don’t do those but we have christine in our company who does who i’m always happy to introduce you guys to i do videos with her you’ll see some of them but look fha’s a fantastic option when you look at how to buy

A house with it it is not more drama so i hope this video has been helpful if you guys have questions or comments or if you’re like well jen i want to know about this just tell me i’m always trying to give content that you guys want um if you like this like if you actually got this far subscribe please okay i appreciate you guys see you soon

Transcribed from video
How To Buy a House in 2022 With an FHA Mortgage 🏠 By Jennifer Beeston