@Your Rich BFF is back this week to help you understand the different types of mortgages to buy a home. Whether you're a first time home buyer or just brushing up on Real Estate, this video will help you understand some options to make investing in property more feasible
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Chapters
0:00 Intro
1:14 Federal Housing Administration (FHA Loans)
3:04 Conventional 97 Loans
4:22 USDA Loans
5:50 VA Loans
FEW THINGS TO KEEP IN MIND (LINKS INCLUDED):
🏡 Conventional Loans 🏡
1. These are only for first time homebuyers (kind of a misnomer because it doesn’t actually have to be your first home, you just can’t have owned a home in the past three years)
2. For most locations the home can’t cost more than $453,100, and in high cost areas, this amount is increased to around $679,650.
3. There’s even a look up tool to check what the cap in your area would be: [ Ссылка ]
4.The home has to be your primary residence
5. And as mentioned, you will pay PMI until you hit 20% equity
🏡 Three Types of USDA Loans 🏡
1. A direct loan from the USDA - these are for low income and very low income families and individuals.
Income limits will vary by location - if you're curious you can look them up here: [ Ссылка ]
2. Similar to an FHA loan, the USDA can also guarantee a mortgage issued by a participating local lender. This lets you get a competitive mortgage without putting any money down, but again, as with the FHA loan and convention 97, since you’ll be putting less than 20% down you will have to pay PMI - Private mortgage insurance.
3. the USDA offers loans and even GRANTS for home improvement. Yes - Grants. As in free money. Packages can also combine a loan and a grant, providing up to $27,500 in assistance.
