The BIG PROBLEMS with FHA Loans

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Title	:	The BIG PROBLEMS with FHA Loans
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🙁I don’t know if my broker is getting me a good offer almost 15 down payment and closing costs, yet I have to pay 175 points for MPI Is there options?
Comment from : @gradosa8272

Wait, my lender definitely told me that mortgage insurence is only needed until I pay 20 of the loan amount?!?
Comment from : @homerhorowitz7649

Why are you wasting time , telling all that history !!!
Comment from : @sonudun

The biggest problem with FHA, is that seller’s need to fix up home to FHA standards…
Comment from : @mrrandom8447

Been approved off and on for 10 years in AZ And still renting from the same person 😅😂
Comment from : @27--m

Big W explanations Thank you
Comment from : @HAHAGoodMeme

What do you do for work? Agent?
Comment from : @AberrantArt

FHA IS CORRUPTED A LONG WITH HUD AND THE MANUFACTURER HOME BUILDERSbrbr😂😂😂😂😂😂😂😂😂 I love it when I’m Right
Comment from : @karlguntherfragstein4225

Investments are the roots of financial security; the deeper they grow, the stronger your future will be"
Comment from : @LincolnFelix-s4z

Can you refinance the FHA loan?
Comment from : @sdhfire

I thought private mortgage insurance drops once you hit 20 equity
Comment from : @Andrew-pv8oz

This video was awesome thank you
Comment from : @daviddeaver5020

Thanks Javi! brYour drawings are awesome 🤌🏾🫰🏾
Comment from : @babybabibaby

840 Larson Shoal
Comment from : @isabelgerald4584

Brown Larry Thomas Kenneth Harris Linda
Comment from : @TitusChristopher-b7z

FHA is a joke I've seen what it does , letting people believe they can buy a house with a 580 credit score is criminal They dont have the same habits as someone who has worked for a solid 700s to 800s, but yet they think they can go out and compete in the same marketplace Sure, it might be sunshine and rainbows at first, but as soon as layoffs start happening, who do you think is more likely unable to pay their debt off ? Someone with a 750 credit score who puts 20 down has no PMI vs someone with a 580 no down to 5 down and a double PMI
Comment from : @manny5848

Hearing you talk about the strict condition requirements with an FHA loan has me wondering if you have any experience with the FHA 203k loan It seems like their purpose is to help get buyers into those fixer-upper homes, but there's not a lot of information about them I'd love a video with advice on 203ks and other rehab/reno mortgage options
Comment from : @DeannaDoomosaur

Hi Javier, I live in Santa Cruz CA, and have been wanting to buy a home for a long time now Sadly, as you may know, home prices here are rediculous I had bad timing in that I didn't start making good money until 2021 Do you think it would be wise to just hold out to see what the market does, or should I just take try and buy anyways A worry I have is that I'm 39 years old right now and don't know if I could pay off a mortgage before I retire Thanks for all you do - Miguel
Comment from : @miguelaguirre9002

9706 Murl Ways
Comment from : @jayfonybishop7606

Can't you get ride of the PMI by refinancing into a conventional loan?
Comment from : @marlowstanfield6815

There ARE lots of distressed houses that need work listed on the MLS Buyers can offer to buy these with FHA rehab loans and offer to buy these homes at discounted prices, but it's the listing agents who advise their sellers against accepting these offers because the REALTORS want to close the transaction ASAP and get paid It's true that a cash offer is more of a guarantee than waiting 30-90 days for a mortgage loan to close I'm a loan officer and even I can see the need for wholesalers If realtors went after distressed property listings and represented them with the same fervor that they put behind non- distressed houses, there would not be a need for an "off market" As a loan officer, I work with first time homes buyers and investors It is sad that so many first time buyers can't afford all the upfront costs, monthly overhead, and the over inflated sales prices, but there is nothing stopping the buyer's realtor from putting in a "wholesale" offer price to purchase a fixer upper My point is, you hate wholesalers, but if REALTORS represented distressed properties better, there would be no need for wholesalers You sound like such a novice realtor, whining about FHA loans, but the rehab loans & corresponding appraisals are more stringent (than conventional) because they help to protect the buyer by getting them into a safe habitable new home FHA loans and their borrowers have a bad rap, because realtors advise their sellers to go for the quick cash or the conventional loan purchase offers We are now in a buyer's market and more sellers & their realtors will become grateful to even be receiving offers contingent on FHA financing
Comment from : @bymilliebphotography8249

Michel Terrace
Comment from : @GreenScott-q8c

Miller Glens
Comment from : @TitusVaden-k5y

Weimann Crossroad
Comment from : @BertPage-n7m

Change your watermarks, and do yourself a favor
Comment from : @mabast007

65888 Sanford Streets
Comment from : @CorrineKropfelder

Cronin Club
Comment from : @TishFreisner-w5q

Corwin Valleys
Comment from : @CarlettaFreilino-z8h

Sage Mews
Comment from : @NewtonBrewster-h7c

Jamel Islands
Comment from : @LowellSchultze-y3e

I had a conventional loan and offered what the buyers wanted but not a penny more because we saw the house needed a lot of cosmetic things done to it They wanted us to go higher because they claimed that there were higher offers and gave us 2 chances to go higher We refused because it was still our very first offer and we weren’t that desperate At the very last minute they called our realtor and accepted our offer It turned out that all the other higher offers were FHA loans and the sellers knew that FHA loans were more strict with inspections and they didn’t have the money or time to get all the cosmetic issues fixed to pass FHA inspections We were so shocked that we got an accepted offer especially when they came back to us 2 times to see if we would go higher That’s when I found out why they didn’t choose someone with an FHA loan I never knew the type of loan could influence the seller’s decisions!
Comment from : @MyLady22

Fha is what it is a home loan just be smart pay on time and once you have been there 7 years cash out refi at a payment you can afford at the right time it can yield benefits only thing probably not for the next 15 yrs bc all hell is about to break loose right before the election
Comment from : @blakethompson6210

Moore Timothy Hall Patricia Brown Barbara
Comment from : @JoeookDummy-o8i

Also, if your home appreciates within 5 years, it’s possible to have the mortgage company re-evaluate and potentially drop the PMI
Comment from : @dwayneghant1258

To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors High housing costs relative to income, stagnant wages, and income inequality drive this issue Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon
Comment from : @nicolasbenson009

So would you suggest FHA or a Conventional loan for a first time home buyer?
Comment from : @exoticbeauty9127

If you can go conventional go conventional Simple as that
Comment from : @fremontas

I like your videos, we are planning to buy a house right now Can you do a video about USDA vs FHA please
Comment from : @petildahmaenzanise5392

Am I eligible for an FHA loan if the house I want to purchase is my third home?
Comment from : @StationOnLife

Your videos are so incredibly helpful And you are enjoyable to watch! Thank you
Comment from : @NicoleWagner-oi3nc

Redlining AKA they didn't wanna give to Black people Why dance around it
Comment from : @Tunechi65

Dang wish you were in Tucson
Comment from : @herbertjones9014

How long do you need to have a credit score for to be eligible for an FHA loan? I am newish to the country and have only had a US credit score for around 2 months Couple mortgage lenders said that I had to wait a couple months? But not sure if that's FHA or not?
Comment from : @stevenjohnson4187

For fha do you get money back for the PMI after you reach 20 equity? Our loan is before the made PMI for the entire loan
Comment from : @thebklynprophet

Not even Joyboy’s haki can help us first time homebuyers
Comment from : @Preetybird

Making things more accessible via loans destroyed the American dreams It’s easier for people to get in but the market know so they raise the price Cars houses student loans all went up cause of loans
Comment from : @txkingg

I love this educational videos keep it up!!
Comment from : @blancajrodriguez

Javier, you have me the confidence and knowledge to move to a lower cost of living area and buy a house You really helped me understand how to not be house broke, and I even had the confidence to negotiate the loan and saved 5 interest at the time! Thanks Javier Keep it up
Comment from : @DancingYearRound

had no choice but to go FHAbrI wish I'd found a cheap ass apartment
Comment from : @capsule2326

Hi javier 😊 could you do a video on conventional?
Comment from : @anajessica13ramirezm74

Thank you for this javi!
Comment from : @danidaydreaming919

Do you have a presentation about the police, fire department, etc down payment program, the procedure to apply for the grant? I do know it run out of moneyas for the seller while is fine A listing agent was very derrogatory about thda buyer
Comment from : @mprrx

Holy crap you're alive haven't seen your content in awhile
Comment from : @Gravesyte

They do have FHA 203k renovation loan but it's too strict and over regulated The contractors on the FHA list are a bunch of thieves that over charge for different repairs or renovations
Comment from : @ozonespec

From a sellers point of view why would i want to deal with an extra inspection with an FHA than a conventional? So i can easily see why sellers would rather take a conventional offer first
Comment from : @freakymrq

I thought that once you have 20 percent of equity in the home, you're allowed to request for the PMI to be removed
Comment from : @edisito9

Great Info!
Comment from : @mstsunshine7935

The PMI is calculated at 55 of the standing balance on the loan It’s pretty much increasing the interest rate by half a point That’s almost always off set by the nearly 1 discount you get on the mortgage rate A lot of times the FHA loan is the better way to go when the difference in interest rate is over 5
Comment from : @barnabusdoyle4930

I lost over $70k when everything started to tank Not because I was in an exchange that went belly up I was just stupid to hold and because that's what everyone said I'm still responsible It just taught me to be a better investor now that I understand more of what could go wrong It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly Thanks Belinda Owens
Comment from : @DaveCulbertson

"assistance" is fake Anything other than 20 down means you are paying extra fees monthly or at closing it's just hidden
Comment from : @captainviper3888

Can you discuss new home construction or installation using FHA?
Comment from : @beewm4225

I like your drawings lol
Comment from : @tyerrascott6596

I put fix and flippers in the same boat as wholesalers Honestly multiple of the fix and flips I've seen have been so poorly and half butt patched to looked good, fix and flippers are probably the worst of the two
Comment from : @midwestworkshop2863

can u use smaller numbers for the examples sometimes like 160,000
Comment from : @ealex3565

When it comes to comparing offers a seller's agent should always ask both buyers for their best and final A convention loan is more appealing because like he said you don't have to worry as much about an appraisal ruining a purchase It has nothing to do with looking down on a buyer because of the type of loan they have Government loans have stricter guidelines
Comment from : @anzieoftheshire

In a round about way : I guess buying FHA is like buying a car subprime borrowing basically
Comment from : @mikejautosandstuff3349

I I used FHA to buy my first and only home back in 2012 I only put 5 on a $170k modest home (1556sq ft) The new home builder paid the closing costs too I got hit with mortgage insurance, but I took the risk and I don't regret it It worked out for me and my wife My credit at that time wasn't that good (my score was 640) and I had a bankruptcy back in 2010, meaning that FHA was most likely my only choice at that time A few years later I had paid down enough the principal and my home price went up in value I got lucky, so Wells Fargo bought my loan, and put it into a regular mortgage, meaning I dropped the mortgage insurance and I put that extra money right back into the principal That has helped me cut interest significantly I also pay byweekly That helps cut the interest even more I only got $96k left and I should be done in about 10 years We are very lucky It was a new construction too We chose the land, options and the cheapest and smallest home they were building at that time in the community My rate is 35interest Thanks for the informative video I personally didn't have to wait 11 years It was like 5 years after that since wells Fargo took over 🤔
Comment from : @joseCalderon1976

If FHA is your only option to buy a house, you probably shouldn't be buying a house yet
Comment from : @estuardoe8

Well i was lucky enough to get rid of the PMI after three years of buying the house Due to the pandemic home price went up sky high so I refinance and that's how the PMI came off the mortgage My payment drop by $1100 i was so happy still feeling happy about it
Comment from : @topandrun126

So if I can just do conventional instead of FHA I can save that extra insurance premium monthly ?? Why isn’t this explained to me by my lender or agent ??
Comment from : @HEC892

Doing good!
Comment from : @ArtemYakovlev

Good info
Comment from : @djsklb

The 55 is only for a streamline refi The purchase rate for a term greater than 15 years with 5 or less down is 85 for the life of the loan It’s higher on a high limit loan
Comment from : @pennytine3657

I bought a townhome in September of 2023 with an FHA loan I paid about $10,000 out of pocket during the process and also got $15,000 from the government towards the down payment that I don't have to pay back as long as I'm in the home for 3 years and don't refinance during that time period My final loan amount was $203,500 with a rate of 6875
Comment from : @BREEZYM6015

FHA Alabama, 300k home but we financed 296k after 35 down 575 (lender buy down) My credit score is 717 Husband’s is 703, so we qualified for conventional but started the pre-approval w/ FHA We received more incentives from the seller partially due to going w/ their preferred lender, but I don’t think our loan was more difficult or “undesirable” than their conventional pre-approvals Smooth process for us House was complete 7/31 We closed on 8/9
Comment from : @ShaeJ_Shae

He is wrong on PMI You can get rid of it According to the Home Owners Protection Act of 1998,, once you achieve 80 or less LTV (Loan Amount to Home Value), are current on payments, and have a flawless payment history on the loan and you can make written request to drop PMI It is NOT for life if you are a good steward of your finances
Comment from : @hammerdown3876

I would not use FHA on a home over 300k with these rates so Buying a FHA home in this market is insane to me You absolutely cannot afford that home The PMI will be high and your own saving habits are bad if you cannot save the 20 percent
Comment from : @TopVillain

Are the USDA loans similar in pros and cons?
Comment from : @EFR1616

I dont have enough fod a 20 down gonna take me like 2 more years i hope i make it cause i refuse to pay pmi
Comment from : @marcelrodriguez2067

At current market I’ll take FHA over conventional because of lower rates with a chance of streamline refi at no equity Only downside is mortgage insurance but lower rate compared to conventional Other than cash buyers VA is the best loan
Comment from : @House_hacker_619

This was a good one thank you!
Comment from : @fishlover

and that wouldn't work for them i guess
Comment from : @10essee10titans

Thank you
Comment from : @csnoremac1

I recently sold my house to a buyer with an FHA loan I did not have good experience with this loan (Twice, I had to extend the closing deadline due to delays from the FHA loan It took 55 days to close on the house due to delays with buyers' down payment assistance and processing times from the loan company)
Comment from : @nataliaurbina6508

I just bought my first house with a VA loan and I realize now after watching this how fortunate I am I only have my principal/interest and homeowners insurance to pay I can't imagine having to pay property taxes and PMI, it would make buying a house impossible for me Good luck to everyone out there navigating the home buying process, I feel for you!
Comment from : @kandeetyme8422

Why don’t people take care of their house!?brI can’t find anything in my price range that will qualify for the FHA inspection because people don’t take care of their house
Comment from : @kinghazythethird

I'm a first time homebuyer and what Javier described at the end is what happened to us We found a reasonably priced house that we loved and made an offer, but learned through our agent that FHA loans do not get any priority and the seller went with another offer that had the conventional loan After discussing our options with our lender, we decided to go with a conventional loan with a grant program that assisted with closing costs We got into a house that was more affordable with better land and we later learned the deal fell through with the previous house, so honestly it felt like it was a blessing in disguise We also have a friend who also purchased a home around the same time we did, but went the FHA route While their mortgage and interest rate are slightly lower, they ended up paying way more in out of pocket and closing costs Looking back I'm glad we didn't go the FHA route and it goes to show how important it is to do your research and consider all of the options available
Comment from : @turnertwist