In this video we talk about the FHA Loan requirements and we walk through exactly what you need to do as a first time homebuyer to qualify for an FHA mortgage/loan.

We go over what an FHA loan is, we compare an FHA loan with a conventional loan, we talk about credit and income requirements, interest rates, down payment, how much an FHA Loan costs and how lenders determine your debt to income ratio so you have a good idea on how much you can qualify for before you even talk to a lender! Then we round out the video by giving you 3 money saving tips that can save you thousands on your loan!

Tip 1: Ask your realtor to negotiate the sellers paying your closing costs. On an FHA loan the sellers can pay up to 6% of your closing costs. On a $200k loan that would be $12k. For $12K it's at least worth asking for/negotiating (keep in mind they can pay UP TO so even if it's not the full $12k it's free money to you!)

Tip 2: Ask your lender about down payment assistance programs. Each state, county and city can have difference down payment assistance programs available and lenders don't always just apply them for you especially if you already have the funds for the down payment, however asking them if you qualify for down payment assistance means that you can use that instead of your own money; which you may want to save for moving expenses, buying furniture or using it for investing/buy crypto!

Tip 3: Ask your lender if they can give you a credit on your interest rate. While this is not ideal; it may help you close on the loan. If you don't have the down payment available ask your lender if it makes sense to give you a credit for taking a slightly higher interest. This will help off set some of the closing costs. The higher the loan amount the more it may make sense (use this as a last resort).

Tip 4: If you have some extra money or if you have the sellers paying your costs. Ask your lender if you can pay extra to get a lower interest rate. In the short term this will be more expensive, but the longer you have the home; the more beneficial it will be. Paying extra for a lower interest rate can save you 10' thousands over the life of the loan!

Tip 5 (not in the video): Pay 1 extra principal payment per year. Once a year pay an extra payment directly on the balance of the loan. This will cut down on how much interest you pay and will cut how long you have to borrower the money for. Again this can save you 10's of thousand over the life of the loan!

Chapters:

0:00 - Intro
0:45 - What is an FHA Loan
1:42 - Talking to your Lender
3:28- Down payment and Closing Costs
6:02- Upfront Mortgage Insurance
6:48- Credit Requirements
9:50- Interest Rates
12:03- Monthly Mortgage Insurance
14:57- Employment Requirements
16:20- Income Docs you want to have Handy
17:16- Debt-to-Income Ratio (important for qualifying)!
20:01- Run a Budget
20:51- Tip 1 to save money!
22:56- Tip 2 to save money!
25:20- Tip 3 to save money!
27:59- Outro- LIKE + SUBSCRIBE

Additional Resources:
Free Credit Report: www.annualcreditreport.com/index.action