After watching this video now I understand when people say “I wish I can go back to the old days” I had to finish this video with a beer everything has gotten so expensive
You don’t just go FHA because you have bad credit that’s not necessarily entirely true. A lot of times is because you don’t have enough money for a conventional. It’s hard to save 6% in NY
We pay $2400 in rent for a 2000 sqft, 3bed, 2 bath. Assuming rent goes up again well be paying almost $2600 for rent a month. At this point, it's almost cheaper to buy in terms of monthly payments, but overhead costs of owning a home like repairs and such have tended make up for that extra price (for the most part). The rental company has provided us with probably more than the difference we would save between a mortgage and renting, in repairs alone. New microwave new garage door opener, screen panel replacements, sprinkler issues (this is a big one that's happened multiple times so far in 1 area of the yard) and more, but its all completely covered. If I owned I'd pay for every single one of those things myself which adds up quite a bit
@marshannajohnson8584 the house nextdoor to us is litterally listed for 1800 a month from the same company. I'll just pick up and move everything 100ft smh
I am waiting to close on a townhouse on April 15th and we somehow got a FHA loan at 5.75%. They didn’t buy down the rate and all we put down was the standard 3.5%. What also blew me away is that my credit score is only 670 and my wife’s is in the low 700’s and I’m the breadwinner. We had also went on contract on another home in early march that fell through because of some dry rot that the HOA wouldn’t give a date for repair and they wouldn’t allow the seller to pay out of pocket to fix it (it was maybe $1000 of damage that needed to be repaired). FHA loans require no dry rot and they couldn’t get us a conventional loan with our dept to income ratio. On that loan we were quoted 6.9% which is what I would have expected on the new home but whatever, it’s saving me several hundred a month.
@@rastaman7140MPI goes down as your balance go down, if you use a amortization calculator for most people not putting 20% down, FHA is just straight up better. At least until conventional rates goes down.
Thanks Sounds good Javier. Since listening to you I have paid off my car and saved 10k for my emergency fund. Now I’m ready to save up for a down payment and will go FHA so I can have a house by December 🎉
@@yooo2568 one of his videos about what all you should do before buying a house. I know it’s common sense but I was never taught this. Pay off debt Save up emergency fund of 3-6 months Save up down payment and closing cost
Is veterans united actually a good lender? I have 734 fico but the interest rate they offered wasnt as good as i thought it would and my mortgage and principal monthly was even higher tgen the realtor app estimates it would be
Your information need to be updated. PMI on FHA is now based on the loan balance meaning it does go down over the years.. by the time you reach 20% paid of with conventional, your fha pmi will be under $100. Even with that the pmi difference doesn’t make up for the interest difference.. as of right now, april 2024, FHA is just straight up better than conventional for EVERYONE that doesn’t put 10 or 20% down.. until conventional interest get closer to fha interest. Also you are wrong about DTI. Fha allows for higher DTI then conventional. Love your videos but yeah this one was not great, lots of wrong information, use an amortization calculator with today’s rate and correct pmi prices and you see that fha is better for most.
FHA MIP is way lower than conventional’s PMI and it goes away after 11 years while conventional gets removed automatically at 22 percent but 20 if you request it. I like 20 percent Conventional cause then you can waive silly escrows and have no pmi which saves you a ton on closing costs and mortgage payments.
They are a headache and a half. Buuuut if you go to their achieve the dream events and get the loan AT THAT EVENT(bcuz the underwriters are there so they do everything there) theeeen I would say yes it’s totally worth it. That’s the ONLY way u would rec them.
Thanks Javier , what if it's an investment property let's say a duplex multifamily home that you won't be that santimantal about it, what will you suggest in this case?
I have a FHA for my condo. I know the 43% doesn't include HOA, but thought I'd work out the math for fun and I'm within $6 of that 43% of monthly gross income good times
I want yo buy a home but cant seem to get my credit above 610..😢 what am i doing wrong ? I have attended FHA counseling and received a certificate but stalled going further...what is the next step?
The biggest barrier to entry to buying a house for me is the monthly payment. Everyone talks about down payment assistance when helping first time homebuyers but I have $150k in cash ready for a down payment but the monthly payment in my area on average is $5,000 without pmi. Oh yeah, that’s just a low end 2 bed condo. Don’t know what to do
I have plans on building a home. Waiting on property, pay it off then get a construction loan. I’ll get a loan to pay the construction loan. Would they see me as first time buyer and get some benefits from it? Which loans don’t allow this? Could I get down payment assistance?
Thanks Javi, for all the great insight. I’m actually working on my RE license license so that I can become a more educated buyer when my husband and I are ready to purchase a home…This really pushed me to get that after the NARs settlement. 😅 Wish us luck! (Also, we will be trying to finance with a VA loan)
And depending on state, you get a reduction of property taxes which can actually raise your buy limit. Just make sure your lender understands that because it raised me from 300k to 500.
VA loans require a strict appraisal guidelines. The majority of homes would not meet these guidelines forcing the buyer to go through the appraisal process more than once. This can cost the buyer nonrefundable thousands. There are many, many fees involved in simply looking. If you don't have your actual down payment + closing costs + diligence + earnest money in cash and ready, you will not be getting a new home. A good figure to shoot for is about $20,000 + your down payment. Remember that MANY fees are non refundable, so if you are looking at three homes, at $5,000 each for basic inspections, if things go well you MAY have enough for closing costs depending on the area. You might have to do diligence several times if inspections fail. Another thing to remember, PMI is going to kill equity. So you BETTER have a 20% or more down payment. If you are making the average in the USA, expect to have saved up more than two years of your net income in cash before entering into this.
I'm 20 years old, I make close to 60k a year, and I have a 764 credit score I want to put 15k down, what type of loans do u recommend for my first-time buying?
Im closing on May 15 , I kearn a lot from ur videos man, ppl think Im a realtor when Im talking. 3 percent Conventional including Florida Bond Program, in Margate FL, yeah i know Florida Margate is crazy
I am seriously considering starting to focus on giving buyers as much tools/education to be fully independent and only use realtors for their mls and showings so that way they don't have to pay them that much when the changes happen in July.
I’m feeling regret for not buying down my rate , I locked at 6.15 Va and had at least 15k to buy down but my lender recommended to save the money because the election year is going to drop rates but hearing my friends buy down to 5.5 makes me feel like I missed out
My wife and i want to get a house with my mother law. Is it possible to have all 3 of us on a mortgage? We'll have 20% down, credit scores from 620-700. We're just starting the looking process and want to go for a pre approval in the next 1-2 months.
I would love to see a video discussing home buying strategies for people who are relocating into the USA from other countries because they have acquired permanent residency.
And yet, if your using property equity to finance a loan, the bank is responsible for making their own assessment of the properties worth. For taxes however, the IRS decides the worth using their own formula.
The one item people tend to forget about is what the property tax will change to based on the new value aka purchase price. Here in Ohio state the property tax is fairly high imo. My two cents.
so which loan would we need for a first time homeowner thats wanting to purchase a fixer upper? we want to by the home next door to my parents but it needs a lot of work.
You don’t need 20 percent down buy a home by the time you have saved all that money the home prices will become higher and you can’t still afford it, if you put 5 percent down and pay your mortgage you will reach 20 percent equity within a few years, the average America can’t save $80,000 to $100,000 especially when inflation is so high.
After watching this video now I understand when people say “I wish I can go back to the old days” I had to finish this video with a beer everything has gotten so expensive
You don’t just go FHA because you have bad credit that’s not necessarily entirely true. A lot of times is because you don’t have enough money for a conventional. It’s hard to save 6% in NY
We pay $2400 in rent for a 2000 sqft, 3bed, 2 bath. Assuming rent goes up again well be paying almost $2600 for rent a month. At this point, it's almost cheaper to buy in terms of monthly payments, but overhead costs of owning a home like repairs and such have tended make up for that extra price (for the most part). The rental company has provided us with probably more than the difference we would save between a mortgage and renting, in repairs alone. New microwave new garage door opener, screen panel replacements, sprinkler issues (this is a big one that's happened multiple times so far in 1 area of the yard) and more, but its all completely covered. If I owned I'd pay for every single one of those things myself which adds up quite a bit
Yes, this is a very big concern and home buying deterrent of mine
@marshannajohnson8584 the house nextdoor to us is litterally listed for 1800 a month from the same company. I'll just pick up and move everything 100ft smh
I am waiting to close on a townhouse on April 15th and we somehow got a FHA loan at 5.75%. They didn’t buy down the rate and all we put down was the standard 3.5%. What also blew me away is that my credit score is only 670 and my wife’s is in the low 700’s and I’m the breadwinner.
We had also went on contract on another home in early march that fell through because of some dry rot that the HOA wouldn’t give a date for repair and they wouldn’t allow the seller to pay out of pocket to fix it (it was maybe $1000 of damage that needed to be repaired). FHA loans require no dry rot and they couldn’t get us a conventional loan with our dept to income ratio. On that loan we were quoted 6.9% which is what I would have expected on the new home but whatever, it’s saving me several hundred a month.
You will have MIP for the life of the loan.
@@rastaman7140he can refinance when rates drop. Which they will
They can refinance when rates are lower to avoid PMI. @@rastaman7140
@@rastaman7140no she won’t. If she ever refinance that will drop
@@rastaman7140MPI goes down as your balance go down, if you use a amortization calculator for most people not putting 20% down, FHA is just straight up better. At least until conventional rates goes down.
Nice seamless dub
I’m preparing to buy my first home, and your videos are so helpful!
This was great thanks javier
Glad you enjoyed it
Thanks Sounds good Javier.
Since listening to you I have paid off my car and saved 10k for my emergency fund. Now I’m ready to save up for a down payment and will go FHA so I can have a house by December 🎉
What video did he post that helped you do that?
@@yooo2568 one of his videos about what all you should do before buying a house. I know it’s common sense but I was never taught this.
Pay off debt
Save up emergency fund of 3-6 months
Save up down payment and closing cost
Thanks for the update Javi! We are looking to close in August or September so I've been wondering what our best options are for this year.
Gm sir, is that normal the seller is a corporate LLC and they decided to hold the escrow account and choose the title company? I'm just wondering...
One correction: if the loan is between 2-5 years old, you need a 75% LTV to get rid of PMI with no improvements. After five years, then its 80-20 LTV.
Is veterans united actually a good lender? I have 734 fico but the interest rate they offered wasnt as good as i thought it would and my mortgage and principal monthly was even higher tgen the realtor app estimates it would be
In my experience in order to get a good deal you basically need to go conventional to compete. Many sellers dont want to bother with fha.
That’s because they can’t sell you crap. FHA is strict on what needs to be done.
This video is everything I needed an more! thank you
Your information need to be updated. PMI on FHA is now based on the loan balance meaning it does go down over the years.. by the time you reach 20% paid of with conventional, your fha pmi will be under $100. Even with that the pmi difference doesn’t make up for the interest difference.. as of right now, april 2024, FHA is just straight up better than conventional for EVERYONE that doesn’t put 10 or 20% down.. until conventional interest get closer to fha interest.
Also you are wrong about DTI. Fha allows for higher DTI then conventional.
Love your videos but yeah this one was not great, lots of wrong information, use an amortization calculator with today’s rate and correct pmi prices and you see that fha is better for most.
FHA MIP is way lower than conventional’s PMI and it goes away after 11 years while conventional gets removed automatically at 22 percent but 20 if you request it. I like 20 percent Conventional cause then you can waive silly escrows and have no pmi which saves you a ton on closing costs and mortgage payments.
MIP only goes away if you put more than 10%. If your putting less then that it’s for the life of the loan.
@@rastaman7140not true.
Is a NACA mortgage worth it?
They are a headache and a half. Buuuut if you go to their achieve the dream events and get the loan AT THAT EVENT(bcuz the underwriters are there so they do everything there) theeeen I would say yes it’s totally worth it. That’s the ONLY way u would rec them.
Thanks Javier , what if it's an investment property let's say a duplex multifamily home that you won't be that santimantal about it, what will you suggest in this case?
I wish he would’ve compared VA and FHA
I have a FHA for my condo.
I know the 43% doesn't include HOA, but thought I'd work out the math for fun and I'm within $6 of that 43% of monthly gross income
good times
I want yo buy a home but cant seem to get my credit above 610..😢 what am i doing wrong ? I have attended FHA counseling and received a certificate but stalled going further...what is the next step?
Get intouch ma’am. We will help you secure that funding.
I wish I knew this before I spoke to the bank. Am I fucked?
Got a VA loan, 6.25 interest… gonna put most of my checks towards it for the next 2 years.
Hi javier, very helpful video. Do you get paid from the relator referrals?
The biggest barrier to entry to buying a house for me is the monthly payment. Everyone talks about down payment assistance when helping first time homebuyers but I have $150k in cash ready for a down payment but the monthly payment in my area on average is $5,000 without pmi. Oh yeah, that’s just a low end 2 bed condo. Don’t know what to do
This comment bothers me
Yeah and seems to be the most overlooked part too
Basically can't afford to buy a house, can't afford to rent either.
Gotta relocate
You need to go live in a small town.
what number do you get on the sides for your haircut? lmk
My PMI is 30.00 because of my score.
What amount did you take out for your mortgage
I have plans on building a home. Waiting on property, pay it off then get a construction loan. I’ll get a loan to pay the construction loan. Would they see me as first time buyer and get some benefits from it? Which loans don’t allow this?
Could I get down payment assistance?
The last 6 houses i made an offer on i lost out to conventional
This is the problem
Thanks Javi, for all the great insight. I’m actually working on my RE license license so that I can become a more educated buyer when my husband and I are ready to purchase a home…This really pushed me to get that after the NARs settlement. 😅 Wish us luck! (Also, we will be trying to finance with a VA loan)
Nice approach!
If you are a veteran, VA home loan by far. No PMI and as little to 0% for down payment.
Sounds amazing
And depending on state, you get a reduction of property taxes which can actually raise your buy limit. Just make sure your lender understands that because it raised me from 300k to 500.
Based on VA disability rating btw.
That VA funding fee though 😮. Don’t hear it mention often but can be pretty costly based on the price of the home.
@@abdeon2203 1.25%-2.15% is fairly low considering the amount needed from the DP.
VA loans require a strict appraisal guidelines. The majority of homes would not meet these guidelines forcing the buyer to go through the appraisal process more than once. This can cost the buyer nonrefundable thousands.
There are many, many fees involved in simply looking. If you don't have your actual down payment + closing costs + diligence + earnest money in cash and ready, you will not be getting a new home. A good figure to shoot for is about $20,000 + your down payment. Remember that MANY fees are non refundable, so if you are looking at three homes, at $5,000 each for basic inspections, if things go well you MAY have enough for closing costs depending on the area. You might have to do diligence several times if inspections fail.
Another thing to remember, PMI is going to kill equity. So you BETTER have a 20% or more down payment.
If you are making the average in the USA, expect to have saved up more than two years of your net income in cash before entering into this.
I'm 20 years old, I make close to 60k a year, and I have a 764 credit score I want to put 15k down, what type of loans do u recommend for my first-time buying?
Wow. Am I seeing this correctly? More than half my monthly payment is JUST the interest?? That should be illegal!
Im closing on May 15 , I kearn a lot from ur videos man, ppl think Im a realtor when Im talking. 3 percent Conventional including Florida Bond Program, in Margate FL, yeah i know Florida Margate is crazy
I am seriously considering starting to focus on giving buyers as much tools/education to be fully independent and only use realtors for their mls and showings so that way they don't have to pay them that much when the changes happen in July.
@JavyVidana South Florida is crazy, with a little more inventory.
First! Yay🎉
I’m feeling regret for not buying down my rate , I locked at 6.15 Va and had at least 15k to buy down but my lender recommended to save the money because the election year is going to drop rates but hearing my friends buy down to 5.5 makes me feel like I missed out
... you haven't even waited yet
Give it time. You’ll see that buying down your rate right now would be wasting a ton of cash.
My wife and i want to get a house with my mother law.
Is it possible to have all 3 of us on a mortgage?
We'll have 20% down, credit scores from 620-700.
We're just starting the looking process and want to go for a pre approval in the next 1-2 months.
I would love to see a video discussing home buying strategies for people who are relocating into the USA from other countries because they have acquired permanent residency.
Just lie about having more money than you really have. It's a "victimless crime".
They require evidence, bank statements, …
I see what you did there lol
;)
And yet, if your using property equity to finance a loan, the bank is responsible for making their own assessment of the properties worth. For taxes however, the IRS decides the worth using their own formula.
@@shadoweater18I need more detailsss
@@andreavargas453 details as in?
Take from the video- were filthy animals to the banks 🧐 your videos are always golden lol
The one item people tend to forget about is what the property tax will change to based on the new value aka purchase price. Here in Ohio state the property tax is fairly high imo. My two cents.
My community got rebates for our taxes so we’re good with no increase
so which loan would we need for a first time homeowner thats wanting to purchase a fixer upper? we want to by the home next door to my parents but it needs a lot of work.
FHA is stricter with the condition of the property, but if you have the chance to there may be a renovation loan or something to explore
No housing market crash . Too much to affordable at this rate . Keep saving
Housing assistant
How do I apply
best mortgage is something you’re comfortable to have every month
Martinez Betty Allen Laura Garcia Barbara
Martin Scott Anderson Daniel Lopez Laura
dont buy a house if you dont have 20% down
That’s stupid do you have a house ?
@@kevinkidneyy yes do you?
@@kevinkidneyydon’t just say it’s stupid, explain why it’s stupid. Or keep your mouth such and don’t bother “helping”.
@@IndrajiotNot stupid but certainly difficult on average for the majority of Americans.
You don’t need 20 percent down buy a home by the time you have saved all that money the home prices will become higher and you can’t still afford it, if you put 5 percent down and pay your mortgage you will reach 20 percent equity within a few years, the average America can’t save $80,000 to $100,000 especially when inflation is so high.
White Shirley Johnson Maria Thomas Anthony
Videos were much entertaining before . kinda miss your humor and editing style