NEW FHA Loan Requirements 2023 - How much home can you afford? - FHA Loan 2023

Are you a first time home buyer interested in buying a house using an fha loan in the 2023 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 2023? 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 100K of income and 150K income using the latest 2023 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 $600,000:

Price: $600,000
Down Payment: $21,000 (3.5% down payment)
Loan Amount: $579,000 (Price - down payment)
MIP: $10,132.50 (1.75% x Loan Amount)
Base Loan Amount: $589,132.50 (Loan Amount + MIP)
Interest Rate: 5.75% (amortized over 30 years)
Mortgage Payment: $3,438.02
Taxes at 1.1% $550
MIP: $270.02 (Base Loan Amount x .0085 / 12 )
Insurance: $175.00 (Base Loan Amount x .0035 / 12)
Total Monthly Payment: $4,433.04

NEW 2023 FHA LOAN LIMITS -

Low Cost Areas:
One-unit: $472,030
Two-unit: $604,402
Three-unit: $730,535
Four-unit: $907,920

High Cost Areas:
One-unit: $1,089,300
Two-unit: $1,394,775
Three-unit: $1,685,850
Four-unit: $2,095,200

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 2023 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 2023 forecast and the housing market 2023 california? After watching this video, do you believe you should be buying a home this year?

Do you believe a house market crash 2023 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

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#HousingMarket2023 #RealEstate #FHA

[juanrestrepo]

Great Info! I wish you would have used lower annual income though to be more realistic. The median income in the US is about $70K a year, and although $100K annual is a bit on the high end, an annual of $150K is simply not realistic unless you are combining incomes and even then its high. Thanks!

[gringogg]

Yes. You are the California home financing MAN!!!

[quxybco]

Thanks for the advice. I made an excel with your formulas to give me a rough idea of what i can afford for different scenarios. Do you have advice on closing cost or any other fees that would be due besides what's mentioned in this video?

[lauralucaspablo]

This is great! thank you for making these type of videos. My lender just told me something about the HUD HOC policy for an FHA loan if trying to buy a triplex or fourplex. Have you heard of this?

[aflyingmodem]

Hey Jeb can you use a down payment assistance program and money you saved up for the loan??

[chiles]

My wife and I are in the process of closing and are just over the $100k range on a 320k home. I don’t understand this vid due to the examples being so high. Why would anyone with a $100k-$150k yearly income try to get a home in the 500’s or more? I think if you gave numbers for homes in the 300-400’s that would be reasonable

[DanielHernandez-dpbn]

Great video. Can you do this one for a conventional loan?

[coryray]

At this point it would be best to wait to buy a home at least 2 years . The high payments you will have to make will really restrict your lifestyle financially . We are still in housing bubble prices today . Forget your neighbor that got the 3 % loan this is meaningless he overpaid by approx . 200, 000 for the home in the last 3 years . Be patient time is money now to wait . Many layoffs on the way in every city short sales coming soon save big time . We remain .

[DanielMcKenney-ejig]

Can you do an video on FHA when it comes to someone who is getting Social security disability.

[shanam]

They never speak on closing cost. And when they run your credit your score goes down .

[thevlogspotwithyolanda]

Very informative video. My lender tried giving me only $377, 000 with 0 DTI, I said that's not going to buy a barn.

[txln]

I just did another approval and they wont approve me for a house around 260k to 300k. They said my debt to income is 55%

[wheeldom]

Now remember folks, ,this is what you would qualify for. If you buy a house for 57% of your gross income. You will be house poor. Not recommended at all to do this . Great video and great information.

[Beee_Ceee]

Does OT contribute to a higher gross income or is it based on straight wages??

[Lumipzz]

Now do VA loans $150-200k. 0% down, funding fee rolled into loan 😅.

[RichLclopps]

Thats a crazy mortgage payment I personally would put down 20% atleast for a lower monthly payment and make sure i had a chunk left over in savings for additional use but i guess it could be argued that you have more in savings putting down a 3.5% down payment.

[lisakey]

Do you include annual bonus as part of your yearly income?

[Reather]

Not sure if this has been answered before, but are you able to put a higher down payment on an FHA loan say 10-20% in order to qualify for a higher priced home?

[lauraleayoung]

If you make $150, 000 thousand year and you are use the 57% debt ration...you will be HOUSE POOR! Your taxes on that bracket is HUGE in California (single) CRAZY!

[jeffl]

Is a 40 year mortgage for first time buyers? Any restrictions? Max loan amount?