Types Of Loans- VA, FHA, Conventional

A video that breaks down the three types of loans categories. Guest interview with one of the top lenders and number one VA lender in Monterey.

Welcome to monterey california my name is toby ferny today i’m going to be sharing some information on the different types of loans that are available as well i’ll be bringing an expert in the lending industry to share some more detail financing really is the most important step in purchasing a home it’s not 2007 and 2008 anymore we’re thanks for handing out loans

Like hotcakes to anyone financing should be the first step that you do before searching for a home so you can find out what you qualify for some people actually start the process by looking for houses first before they figure out what they qualify for that’s a bit like shopping for cars before you even have your driver’s license you’re going to want to find out

What you qualify for because if you start looking at $600,000 houses and then you find the house that you really love but you find out you only qualify for a $400,000 house it’s gonna be really hard to go back and look at only $400,000 houses because probably not a surprise those $600,000 houses are going to be nicer i’ve shared with you that i’d be telling you

A lot of the myths that there are about real estate one of the first myths that i would like to debunk is that you do not need 20% to put down for a home purchase many clients who i speak to think that they need to have 20% saved up in order to start getting a loan and start the home buying process there’s no way around it in places like monterey and in california

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Homes are extremely expensive so to have 20% saved up depending on the cost of the home you could be talking about hundreds of thousands of dollars this is not a reality for the average american if you cannot put 20% down there are other options of what you can do if you’re unable to put 20% down you may have something that’s called private mortgage insurance or

Pmi and we can talk about what that’ll do to to your payment you may be asking yourself why is their realtor giving information about mortgages yes i am not a loan originator i am not a mortgage broker but i’ve been doing real estate for a while in every single client that i’ve worked with has utilized a mortgage this is a lot of information that i’ve picked up

Along the way as well i’m gonna be having a guest speaker my main man jeff mcmullen who has been doing mortgages in monterey county since i think before there was internet hey bolin and i was going to review the types of financing that we see most often so in monterey county first-time homebuyers typically will use one of these three types of financing first and

Foremost is va which is a loan for veteran so if you’ve got military service and you qualify for a va loan it’s my opinion that the va loan is probably the best loan for you those loans have zero down payment requirement and there’s also no pmi or mortgage insurance which toby talked about so if you were not in the service you basically have two options as far

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As financing with less than 20% down there’s fha those are loans made by the federal housing administration those have a minimum downpayment of three and a half percent so you need to bring in three and a half percent typically plus closing costs in order to make those loans work and then we have conventional financing conventional financing can be as low as 3%

But typically in monterey county it’s 5% down so just kind of just to rico just to recoup va 0% down fha three and a half percent down with mortgage insurance conventional loans we’re going to be three or five percent down with mortgage insurance thank you jeff if you’re asking yourself where would be a better source to learn more information about mortgages

And the types of loans in general i would highly recommend getting yourself connected with a local mortgage professional such as jeff who can share more information with you they can look at your finances and see what type of loan you would qualify for what your monthly down payment would be if you don’t know where to start looking for a local trusted mortgage

Advisor check with your local realtor as he or she should know two or three local trusted mortgage advisors if you would like further explanation or you have any topics that you would like me to put together for a future video or if you have questions about the mortgage and loan process for jeff feel free to send me a message or email me at toby ferny at gmail.com

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Please subscribe for future content and more information stay tuned for my next video which is going to talk about the steps to the home buying process best wishes and be well

Transcribed from video
Types Of Loans- VA, FHA, Conventional By Toby Fernie