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

Are you a first time home buyer interested in buying a house using an fha loan in the 2024 housing market but unsure how much home you can afford? How do you calculate your debt to income based on the FHA loan requirements for 2024? What credit scores do you need? How much down payment does FHA require? In this video, we are going to discuss how much you can afford to purchase making both 50K of income and 75K income using the latest 2024 FHA Loan Requirements, answer some common questions around FHA and show you how to do some basic FHA calculations with regards to Mortgage Insurance.

Other FHA videos you may find Helpful:

RESOURCES:

🎙- The Educated Home Buyer Podcast -

Video Calculations using $250,000:

Price: $250,000.00
Down Payment: $8,750.00 (3.5% down payment)
Loan Amount: $241,250.00 (Price - down payment)
MIP: $4,221.88 (1.75% x Loan Amount)
Base Loan Amount: $245,471.88 (Loan Amount + MIP)
Interest Rate: 5.75% (amortized over 30 years)
Mortgage Payment: $1,432.51
Taxes at 1.1% $229.17
MIP: $173.88 (Base Loan Amount x .0085 / 12 )
Insurance: $75.00 (Estimate)
Total Monthly Payment: $1,910.56

Low Cost Areas:
One-unit: $498,257
Two-unit: $637,950
Three-unit: $771,125
Four-unit: $958,350

High Cost Areas:
One-unit: $1,149,825
Two-unit: $1,472,250
Three-unit: $1,779,525
Four-unit: $2,211,600

What is an fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.

➡ What is fha mortgage insurance? Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.

➡ What is the current upfront mortgage insurance premium for fha loans? The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.

➡ How do you calculate the monthly mortgage insurance premium for an fha loan? Purchase Price x Percent of Amount Financed x 1.0175 x .0055 / 12

Example Below using a $350,000 purchase price putting 3.5% down:
$350,000 x 96.5 = $337,750
$337,750 x 1.0175 = $343,660
$343,660 x .0055 = $1,890.13
$1,890.13 / 12 = $157.51 / month

FHA loan 2022 requirements

✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 57%. (Actually you can go much higher than this)
✅The home must be the borrower's primary residence.
✅Borrower must have steady income and proof of employment.

FHA Videos You May Find Helpful:

I hope you appreciate this update on fha loans for first time home buyers for the housing market 2023 california as well as this real estate market update from your local Huntington Beach Real Estate Realtor, Jeb Smith.

Please let me know your thoughts below: what are your predictions for the housing market 2024 forecast and the housing market 2024 california? After watching this video, do you believe you should be buying a home this year?

Do you believe a house market crash 2024 or real estate bubble will happen? If so, why? What are your thoughts on the Orange County real estate market and the potential real estate crash for orange county real estate?

Jeb Smith (Huntington Beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty

#housingmarket2024 #RealEstate #FHA

[steviecoleman]

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!!

[papasmurfication]

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

[jenniferh]

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 😢

[acedia]

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.

[sageduff]

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.

[maltpatriot]

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……

[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

[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!

[joseC]

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?

[mrivy]

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

[Anonymous]

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.

[shanekafavorite]

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

[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.

[sheffrespawnz]

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

[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

[squattles]

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

[Lovepuppies]

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!

[hopefulfilled]

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…)

[peacebeteal]

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

[RobertBean-bfog]

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.