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 50K of income and 75K 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.
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 .0085 / 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 .0085 = $2,921.11 $2921.11 / 12 = $243.43 / 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.
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?
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