✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral ⏩ Comparing Monthly Payments on FHA vs Conventional Loan - czcams.com/video/6N-mUJAKTak/video.html 🏠 - First Time Home Buyer Course - www.becominghomewise.com
Was all set to close and just went through underwriter hell. They were leaning towards denying my conventional loan despite having over 730 credit score, low DTI score, and money for closing costs, appraisal and inspection.. My loan went to a second review because my underwriter was stuck on why I didn't file for 2022 income taxs. I was only working part time and did not meet the IRS threshold to file. Submitted paystubs and everything they asked. Real Estate Agent and Loan officer were baffled by the underwriter even though my full time job pulls in way over 3x the mortgage payment I was looking at...
@@williamstevenson9480 I can see that would ask about 2022 but if your good on either side of it they should not have become difficult. Probably some putz covering their butt
Hi @garydownes1594, glad you liked the background music! I agree, sometimes simplicity is key in keeping the focus on the content. Really appreciate your positive feedback. Thanks for tuning in!
Thank you very much, @The_Mortgage_Angler! Your compliment is highly appreciated. Cloning might be a long way off but educating and trying to be like the realtor that you'd want to work with is definitely our goal. Cheers for your continuous support!
I have had three types of the home loans (FHA, USDA and conventional) and I feel that conventional is the best. But then again maybe that's because I was able to pay off the mortgage insurance.
2024? Good luck with insane house prices, the lower you put down, the more you pay per month, with already crazy interest and high house prices, put mininum down is digging yourself a hole and paying a lot higher for mortgage
Been a fan ever since you started your channel. Your always on point and very detail which is very important since i lot of this realtors don't want to give out many important information. Keep up the great work always my support 👍💯.
I'm so grateful for your continued support, @echoyderecho7121! It's great to know that the detailed content is appreciated and of value to you. Keeping things transparent and informative is always the goal, as I believe empowering my viewers with knowledge is so important. Many thanks for your encouragement - it means more than you know! 💯👍
That’s my problem . I’m scared I won’t qualify because of my debt to ratio . I have good credit 700 but need help with down payment assistance and my debt ratio. I really want a house ! 😢
All of the loan stuff with buying a house is so confusing and how they calculate everything is so hard to follow. We were pretty set on doing a physician loan which has 0% financing with no pmi. I'm glad we gave the conventional loan a chance because even though we have pmi and a down payment, it was a better deal than doing the higher interest rate for the physician loan.
It's great to hear that you explored different loan options. Each type of loan has its own pros and cons, and oftentimes people assume loans with no down payment or no PMI are always the best. But as you've discovered, sometimes conventional loans can offer better deals despite having a down payment and PMI, especially when it comes to interest rates. I always encourage buyers to do this comparison and figure out what suits their specific financial circumstances. Keep doing your research, it will pay off!
Your not listening to avoid a Pmi you have to drop 20% down if not the pmi is still worked into the mortgage or higher interest rate. No mater what if you drop less the 20% down you will be paying PMI
You pretty much described me. But my agent said we had 100k for a doen payment in the offer. But knowing we where already approved with the bank for only 3 percent down. Gave the selling a lil bit of confidence in picking us 😜
I'm really glad you found the video useful! It's great to hear that the delivery and information on Conventional Loans were helpful. Your support and feedback are much appreciated. Do keep coming back for more informative content. Thanks again!
I’m 19 I’ve bought a car under my name n it been over a year so my credit is better never missed a payments on nothing score is 730+ I wanna buy fourplex or sum but idk because I don’t have a good income prove what would you suggest
Keep paying your credit cards on time and slowly pay it off so you can time it out so you have zero debt by the time you are hoping to use your credit for a car or house loan
Hi @candelariaw1668, Thanks for taking the time to watch the video and share your experience with your PMI. That's the beauty of the financial aspects of home buying, it can vary a lot based on individual situations. It's great to see that you're informed and aware about your mortgage details. Don't hesitate to reach out if you have any questions or if there's a topic you'd like to see covered in a future video. Keep Living the Dream!
In my area, there are a lot of properties that are RVs in an RV park. They've often built a skirt around it with a deck and outbuilding. I know I had FHA before and they wouldn't let us get a double-wide or anything that could potentially be driven away. How would a conventional loan work with an RV lot with an RV sitting on it?
RV loans are a bit different and normally you have to find an institution that does specifically RV loans. A mortgage loan from most lenders will not finance it unless they have designed a program just for it. Your conventional, FHA , USDA or VA won't finance that type of loan. That's a niche product but yes you can get a loan for it and claim it as primary you just have to most likely go to a bank that has an RV loan program also known as recreational vehicle loans.
@@The_Mortgage_Angler To clarify, the lot the RV is on is considered "land" and is combined with the RV that sits on top of it. So you are buying real estate and a vehicle.
Most conventional lenders will not finance a property that isn't considered "real" property, and unfortunately, mobile homes such as RVs are typically considered personal property rather than real estate. Typically, RVs and the lots they occupy are financed separately. Lot loans can be secured for the land itself, but the actual RV or mobile home is usually financed through personal loans or RV loans. It would be best to check with local lenders to see if they have specific programs for that type of situation.
My home is paid off and I’m currently looking to purchase another house and sell my current home. My credit score isn’t that great but it’s above 600. What if I want a $500k house and put down $200k? Does that help at all?
Hi! I have no debt other than credit cards, which I use for nearly every purchase but I pay it off every month (basically use it as a debit card). Is this hurting my debt to income ratio? Should I stop using my credit card around the time I start looking for a loan?
That’s fantastic to hear! Preparation is a key first step in the home buying process. Don't hesitate to reach out if you have any questions or need additional resources.
We do not two years of work history on our taxes, but do have enough income and very low debt to income ratio, alsooooo great credit score of 720 and husband credit score is 700. Is our only option a bank statement loan with the insane 10% down and potential 7+% interest rate :(((
Yes, funds received from a loan against your life insurance policy can typically be used as an approved source of funds in a real estate transaction. However, it's always recommended to consult with your lender or financial advisor for specific guidance applicable to your situation.
I dont want a credit card, but im forced to use one to build my credit score. If i stop using credit cards once i hit a high score, does that debt to income portion disappear? Do they average out the last 2 years? Or do they only care about the most recent month's data?
Stopping the use of your credit card doesn't erase your historical debt-to-income ratio, it will still be a part of your credit history. Lenders look at your overall lending history, which typically means several years of data, not just the most recent month. However, if you maintain a good payment history, any high debt-to-income ratios from the past will have less of an effect on your credit rating. It's always a good idea to periodically review your credit report to ensure all information is accurate and up to date.
@JebSmith thanks. So even if my car is completely paid off now, they will factor that loan in? Even though I don't have that debt anymore? I don't really understand. My DTI right now should literally be 0%, as I don't have any borrowed money. Do I need to stay that way way 2 years?
Highly recommend banking with a credit union. Do a credit builder through them, Ive done 3 now (plus credit cards and my car loan) and my credit score went from 680 to 800 In about 4 years total.
You're partially correct, @javsanch7682. Generally, closing costs average around 2-5% of the purchase price. The 3.5% down-payment is typical for an FHA loan, so you would need that in addition to the money for closing costs. It does feel like double, but remember that the down-payment is equity in your home, not a fee. The closing costs are fees associated with the transaction.
Hello @jonathanhahka9939, thank you for taking the time to watch the video and leave a comment. Yes, indeed, 45% is a typical debt-to-income (DTI) ratio for many mortgage programs. This means that a majority, but not all, of your gross monthly income can go toward paying off debts including your mortgage, student loans, credit cards, and car loans altogether. I hope that clarifies! If you have any more questions, feel free to ask. Happy house hunting!
@ia6980 yea was thinking that might have to be willing to put a little more I will start talking with a realtor later this year. I just want to avoid a 30 year mortgage. Pay a house payment till I'm in my mid 50s is not something I want.
Hello @autobotdiva9268, Thanks for watching and sharing your thoughts! It's certainly true that house affordability can be a significant challenge. The intention behind reducing home buying requirements is to make homeownership more accessible to more people. You're right that these changes were perhaps overdue. Let's keep the discussion going to ensure the housing market works for everyone. Thanks again for your insight!
@@JebSmith I agree reducing the requirements helps as long as people make sure everything else is inline like Credit Score , DTI, EMERGENCY FUND and Down Payment.
✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral
⏩ Comparing Monthly Payments on FHA vs Conventional Loan - czcams.com/video/6N-mUJAKTak/video.html
🏠 - First Time Home Buyer Course - www.becominghomewise.com
Tyndall federal qualified me for 0% down payment on conventional loan and i got the seller to pay 3k pn my closing.
Was all set to close and just went through underwriter hell. They were leaning towards denying my conventional loan despite having over 730 credit score, low DTI score, and money for closing costs, appraisal and inspection.. My loan went to a second review because my underwriter was stuck on why I didn't file for 2022 income taxs. I was only working part time and did not meet the IRS threshold to file. Submitted paystubs and everything they asked. Real Estate Agent and Loan officer were baffled by the underwriter even though my full time job pulls in way over 3x the mortgage payment I was looking at...
Was this CA ?
Yeah you only working part time was probably a red flag. They would throw a fit for far less lol
@@williamstevenson9480 I can see that would ask about 2022 but if your good on either side of it they should not have become difficult. Probably some putz covering their butt
Wow no nonsense background music. 😊. Great stuff.
Hi @garydownes1594, glad you liked the background music! I agree, sometimes simplicity is key in keeping the focus on the content. Really appreciate your positive feedback. Thanks for tuning in!
800 Credit Score
Zero debt
Want to buy a $130k condo, only problem, I’m self employed and can’t prove my income 😢 can I still qualify?
Jeb, you are the constant professional and I appreciate your knowledge and information.
As always, great job on breakdown. We need to clone realtors like you.
Thank you very much, @The_Mortgage_Angler! Your compliment is highly appreciated. Cloning might be a long way off but educating and trying to be like the realtor that you'd want to work with is definitely our goal. Cheers for your continuous support!
When I say this video was so darn helpful… bravo!!! Terms explained to a T!!! Excited to continue this journey
Glad it was helpful!
I have had three types of the home loans (FHA, USDA and conventional) and I feel that conventional is the best. But then again maybe that's because I was able to pay off the mortgage insurance.
2024? Good luck with insane house prices, the lower you put down, the more you pay per month, with already crazy interest and high house prices, put mininum down is digging yourself a hole and paying a lot higher for mortgage
Been a fan ever since you started your channel. Your always on point and very detail which is very important since i lot of this realtors don't want to give out many important information. Keep up the great work always my support 👍💯.
I'm so grateful for your continued support, @echoyderecho7121! It's great to know that the detailed content is appreciated and of value to you. Keeping things transparent and informative is always the goal, as I believe empowering my viewers with knowledge is so important. Many thanks for your encouragement - it means more than you know! 💯👍
That’s my problem . I’m scared I won’t qualify because of my debt to ratio . I have good credit 700 but need help with down payment assistance and my debt ratio. I really want a house ! 😢
Can you pull it out of your ROTH or 401K?
usda loan.
I’m a cash buyer but Can afford the property tax, insurance, cost of routine maintenance and so on. Sad!
"It's in your best interest" well put haha
All of the loan stuff with buying a house is so confusing and how they calculate everything is so hard to follow. We were pretty set on doing a physician loan which has 0% financing with no pmi. I'm glad we gave the conventional loan a chance because even though we have pmi and a down payment, it was a better deal than doing the higher interest rate for the physician loan.
It's great to hear that you explored different loan options. Each type of loan has its own pros and cons, and oftentimes people assume loans with no down payment or no PMI are always the best. But as you've discovered, sometimes conventional loans can offer better deals despite having a down payment and PMI, especially when it comes to interest rates. I always encourage buyers to do this comparison and figure out what suits their specific financial circumstances. Keep doing your research, it will pay off!
Your not listening to avoid a Pmi you have to drop 20% down if not the pmi is still worked into the mortgage or higher interest rate. No mater what if you drop less the 20% down you will be paying PMI
@jayg5433 not on a physicians loan, they are different. Only available for physicians and dentists
@@nspencer257 to be honest I never heard of it but I’m pretty sure it’s factored in there somehow someway
What’s is pmi
You pretty much described me. But my agent said we had 100k for a doen payment in the offer. But knowing we where already approved with the bank for only 3 percent down. Gave the selling a lil bit of confidence in picking us 😜
one of the best video's available! phenomenal delivery on every topic regarding Conventional Loans. Thank you very much Jeb!
I'm really glad you found the video useful! It's great to hear that the delivery and information on Conventional Loans were helpful. Your support and feedback are much appreciated. Do keep coming back for more informative content. Thanks again!
I’m 19 I’ve bought a car under my name n it been over a year so my credit is better never missed a payments on nothing score is 730+ I wanna buy fourplex or sum but idk because I don’t have a good income prove what would you suggest
YESSS I want this question answered by him!!! Bc my Husband does not have proof of income either tho we make enough and have great credit!
Any ideas and tips on how to repair/increase your credit? 😊
Keep paying your credit cards on time and slowly pay it off so you can time it out so you have zero debt by the time you are hoping to use your credit for a car or house loan
My PMI is 55.00 a month through my conventional loan I received.
Hi @candelariaw1668,
Thanks for taking the time to watch the video and share your experience with your PMI. That's the beauty of the financial aspects of home buying, it can vary a lot based on individual situations. It's great to see that you're informed and aware about your mortgage details. Don't hesitate to reach out if you have any questions or if there's a topic you'd like to see covered in a future video. Keep Living the Dream!
With what % down?
In my area, there are a lot of properties that are RVs in an RV park. They've often built a skirt around it with a deck and outbuilding. I know I had FHA before and they wouldn't let us get a double-wide or anything that could potentially be driven away. How would a conventional loan work with an RV lot with an RV sitting on it?
RV loans are a bit different and normally you have to find an institution that does specifically RV loans. A mortgage loan from most lenders will not finance it unless they have designed a program just for it. Your conventional, FHA , USDA or VA won't finance that type of loan. That's a niche product but yes you can get a loan for it and claim it as primary you just have to most likely go to a bank that has an RV loan program also known as recreational vehicle loans.
@@The_Mortgage_Angler To clarify, the lot the RV is on is considered "land" and is combined with the RV that sits on top of it. So you are buying real estate and a vehicle.
Most conventional lenders will not finance a property that isn't considered "real" property, and unfortunately, mobile homes such as RVs are typically considered personal property rather than real estate. Typically, RVs and the lots they occupy are financed separately. Lot loans can be secured for the land itself, but the actual RV or mobile home is usually financed through personal loans or RV loans. It would be best to check with local lenders to see if they have specific programs for that type of situation.
@@JebSmith Thank you for your time. I found that very informative.
Great video! Thank you.
My home is paid off and I’m currently looking to purchase another house and sell my current home. My credit score isn’t that great but it’s above 600. What if I want a $500k house and put down $200k? Does that help at all?
The old rule of money talks comes into play.
Hi! I have no debt other than credit cards, which I use for nearly every purchase but I pay it off every month (basically use it as a debit card). Is this hurting my debt to income ratio? Should I stop using my credit card around the time I start looking for a loan?
You wake up real early to tape these videos!
Great video thank u for sharing
If I understand you correctly, VA loans build in PMI into their rates. Is that why lenders tell veterans no PMI for VA loans?
No….. VA interest rates are typically better than any other loan program out there.
Even with a $6K funding fee on $300k loan? I’m not a disabled vet.
This sounds wonderful. I hope so I'll be ready to buy
That’s fantastic to hear! Preparation is a key first step in the home buying process. Don't hesitate to reach out if you have any questions or need additional resources.
I just bought a house with 48,000 auto loan. House is worth 344,000
What's your yearly salary, if you don't mind me asking
@@omessialeak6650 he must be making at least 80k a year
Well at least 85k a year right?
Whats your debt and salary?
How did you even do that
We do not two years of work history on our taxes, but do have enough income and very low debt to income ratio, alsooooo great credit score of 720 and husband credit score is 700. Is our only option a bank statement loan with the insane 10% down and potential 7+% interest rate :(((
So we’re talking non-qm loans similar to liiiiike a bank statement loan?
Does a loan taken against my life insurance policy can be used as an approved source of fund?
Yes, funds received from a loan against your life insurance policy can typically be used as an approved source of funds in a real estate transaction. However, it's always recommended to consult with your lender or financial advisor for specific guidance applicable to your situation.
How high can you go on the front-end dti ratio if you have no other debt?
I dont want a credit card, but im forced to use one to build my credit score. If i stop using credit cards once i hit a high score, does that debt to income portion disappear? Do they average out the last 2 years? Or do they only care about the most recent month's data?
Stopping the use of your credit card doesn't erase your historical debt-to-income ratio, it will still be a part of your credit history. Lenders look at your overall lending history, which typically means several years of data, not just the most recent month. However, if you maintain a good payment history, any high debt-to-income ratios from the past will have less of an effect on your credit rating. It's always a good idea to periodically review your credit report to ensure all information is accurate and up to date.
@JebSmith thanks. So even if my car is completely paid off now, they will factor that loan in? Even though I don't have that debt anymore? I don't really understand. My DTI right now should literally be 0%, as I don't have any borrowed money. Do I need to stay that way way 2 years?
Highly recommend banking with a credit union. Do a credit builder through them, Ive done 3 now (plus credit cards and my car loan) and my credit score went from 680 to 800 In about 4 years total.
You forgot to mention closing closed its 5percent plus 3.5percent down-payment so basically you gotta have double
You're partially correct, @javsanch7682. Generally, closing costs average around 2-5% of the purchase price. The 3.5% down-payment is typical for an FHA loan, so you would need that in addition to the money for closing costs. It does feel like double, but remember that the down-payment is equity in your home, not a fee. The closing costs are fees associated with the transaction.
How about investment loan? Does 3% down works for that as well.
No, with investment loans you are going to need around 25% in most cases.
Any way I can get help with closing cost?
It's possible.....Talk to your Lender/Realtor as they can help you structure it.
45%??
Hello @jonathanhahka9939, thank you for taking the time to watch the video and leave a comment. Yes, indeed, 45% is a typical debt-to-income (DTI) ratio for many mortgage programs. This means that a majority, but not all, of your gross monthly income can go toward paying off debts including your mortgage, student loans, credit cards, and car loans altogether. I hope that clarifies! If you have any more questions, feel free to ask. Happy house hunting!
I need a lender emergency that can get me a convertional loan with 3% down yearly over 70k and over 700 credits score let me know
By the end of this year i hope intrest goes down. Will give a 80k downpayment on a 400k home hope my payment is between 2.5k on a 15 year mortgage.
Don't think that's gonna happen, 80k down is not enough
@ia6980 yea was thinking that might have to be willing to put a little more I will start talking with a realtor later this year. I just want to avoid a 30 year mortgage. Pay a house payment till I'm in my mid 50s is not something I want.
4 the algo
Why was my pre approval letter from my lender several thousand dollars less for a USDA loan vs a conventional loan?
Different banks and programs look at different things and decide how much you approve for.
❤
Who tf makes $120,000 a year in 2024?
A lot of people
@@JebSmith what job is that? And what city? 🧐
@@user-zp1mq1zo1ofacts… I need to know… I’m $35k/yr here in Houston💔 and I’m trying to buy a house. I have $25k cash
Me :D
Because peiple cant afford a house so lets decrease the requirements which shouldce been original anyway
Hello @autobotdiva9268,
Thanks for watching and sharing your thoughts! It's certainly true that house affordability can be a significant challenge. The intention behind reducing home buying requirements is to make homeownership more accessible to more people. You're right that these changes were perhaps overdue. Let's keep the discussion going to ensure the housing market works for everyone. Thanks again for your insight!
@@JebSmith I agree reducing the requirements helps as long as people make sure everything else is inline like Credit Score , DTI, EMERGENCY FUND and Down Payment.
Hold gents! 2008 is going to happen all over again!
USDA has no PMI 🤡
You can call it whatever you want but it has both 1% upfront guarantee fee and a 0.35% annual fee
You can call it whatever you want but it has both 1% upfront guarantee fee and a 0.35% annual fee
Lender is offering me 3% down conventional plus down payment assistance that goes away in 7 yrs..is this a good idea?
Bro, please can you tell me what tool to use for video editing, or do you hire a video editor?
Editor.