This Is How Much Home You Can You Afford with a FHA Loan

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 50K -100K 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

[KyleAndersonSkates]

this made me feel way more comfortable about being able to qualify for my first home with my wife 🙏

[dixielandproductionco.]

Thanks for the notification Jeb smashed the thumbs up good stuff 😊

[fatmanmillionaire]

So basically a broken down shack with a nice shiny tarp for a roof lol

[Jimwin]

Man $50k used to be a decent income in the not so distant past.

[Juliozev]

I think the title should be how much you can qualify, and not how much you can afford. Buying a home should not bring stress, and financing 47% of your income into a home leaves very little, if any, for savings, emergencies, and investments.

[luisalbertotorresgrullon]

Why does Google says that fha requires 31% front end and 43% back end are you dti ratio percent for all scenarios?

[wislydesir]

How much you can afford buying home if you make $34, 575 a year please

[tofuify]

where you getting 5%, todays FHA mortgage loan rate is 6.21?

[_KrystalAlexis]

I am hoping home prices drop, everything is 500, 000 + where I live.

[Dccd]

Me and my wife make about 180k a year gross, 13k monthly gross. 3k debt monthly without mortgage, , 5626 with (hopefully) future mortgage. Thoughts?

[susievidal]

Jeb my lender wants to take most of my savings for the down payment but i want my husband to apply for any programs available and my friends said there are programs available for first time buyers but i cant finf any lenders that dont offer this program and require 1p percent down payment im trying to leave my savings in the bank so i have back up money for the mortgage in case my husband doesn't have work which sometimes he doesn't have work because of the weather any mortgage lenders have these programs?

[tnove]

Yeah if this is really how the banks are lending, then we have lose lending all over again people won’t be able to keep up with all the bills.

[ISILENTNINJAI]

How much do i need to make to afford a 528k home if i give a 5% downpayment?

[Loxydafoxx]

This use to be middle tier upper middle class income 😢

[ItsJesse]

Okay but what if you're on disability and your yearly income is only $11, 000. I owe $60, 000 left on my house but how much would I have to pay that down to get my cosigner off my loan?

[ismaelveliz]

Bro nobody can understand anything at the speed you deliver your information. For understanding purposes you defited yourself, I'm just saying.thanks anyway