#fhaloans #fhaloan #homeloan
FHA Loan Requirements For 2023

With everything so expensive it can be very difficult to save money for a down payment to buy a home. So in today’s video Karan shares how you can buy a home with just 3.5% down by utilizing the FHA Loan Program. He tells you what the New FHA Loan Requirements for 2023 are and explains how this loan really works! Then he dives in to explain if this loan is a good fit for you or not. And lastly he goes over an actual loan scenario to show you what your Mortgage Payment will be if you got a home today using the FHA Loan Program.

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HUD Website For FHA Loan Limits Per County:
https://entp.hud.gov/idapp/html/hicos...

FHA LOAN LIMITS For 2023:

Low Cost Areas:
One-unit: $472,030
Two-unit: $604,402
Three-unit: $730,535
Four-unit: $907,920

High Cost Areas:
One-unit: $1,089,300
Two-unit: $1,394,775
Three-unit: $1,685,850
Four-unit: $2,095,200


FHA Loan Scenario:
@ $400,000 Purchase Price:

$400,000 X 96.5% = $386,000
Initial Loan amount = $386,000
Upfront MI: 1.75% of $386,000 = $6,755
Financed Loan Amt = $392,755

MIP: $392,755 x 0.85% = $3,338.42/12
Monthly MI: 278.20

@ 5.5%, 30 Year Fixed and $392,755 Loan Amt

Property Taxes (@1.25% ) of purchase price/12 = $416.67
Hazard Insurance $1200/annually, Monthly= $100

Total FHA Loan Payment (Principal, Interest, MIP, Insurance and Taxes) = $3,024.89

FHA Loan Requirements For 2023:

-Credit Score can be 500 (10% down if score 500-579)
-Credit Score 580 (3.5% Down)
-DTI of 57% in some cases
-Consistency In Employment
-Monthly Mortgage Insurance Premium required
-One Time Upfront MIP Finance Charge
-Must Be Your Primary Residence

Who Sponsors the FHA Loan?

The Federal Housing Administration (FHA) sponsors the FHA loan. The FHA is a government agency within the U.S. Department of Housing and Urban Development (HUD), and it was established in 1934 to help make homeownership more accessible and affordable for more people.

The FHA does not lend money directly to borrowers. Instead, it insures the loans that are made by approved lenders, such as banks and mortgage companies. This insurance protects the lender against losses if the borrower defaults on the loan.

Who can get an FHA Loan?

Anyone who qualifies under the FHA guidelines and any borrower who is purchasing a home for primary use, that person does not have to be a First Time Home Buyer.

What type of property can I buy with an FHA Loan?

FHA loans can be used to purchase single-family homes, multi-unit properties, and condos, and they can also be used for refinancing existing mortgages. Borrowers with FHA loans are required to pay an upfront mortgage insurance premium and an annual mortgage insurance premium, which is added to their monthly mortgage payments.

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Karan Singh
CA DRE #: 01954833
Company NMLS #: 1315421
Personal NMLS #: 448464