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Exploring FHA Loans: A Guide for First-Time Homebuyers
Are you a first-time homebuyer considering an FHA loan to purchase your first house in the 2026 housing market? This episode provides a comprehensive guide to understanding FHA loans, including the latest requirements for 2026.
FHA Loan Requirements for 2026:
- Minimum FICO® score of 580 for a 3.5% down payment.
- FICO® scores between 500 and 579 require a 10% down payment.
- Mortgage Insurance Premium (MIP) is mandatory for all borrowers.
- Debt-to-Income Ratio must be under 57%.
- The home must be the borrower's primary residence.
- Borrowers must demonstrate steady income and provide proof of employment.
Understanding FHA Mortgage Insurance:
FHA loans require both upfront and annual mortgage insurance premiums. The current upfront mortgage insurance premium (UPMIP) is 1.75% of the base loan amount, applicable regardless of the amortization term or loan-to-value (LTV) ratio.
Mortgage Insurance Calculation:
To calculate the monthly mortgage insurance premium, use the formula: Purchase Price x Percent of Amount Financed x 1.0175 x 0.0055 / 12. For example, with a $350,000 purchase price and 3.5% down payment, the monthly premium is approximately $157.51.
Learn about the pros and cons of FHA loans and how they compare to other mortgage options. The episode also offers insights into FHA loan limits for 2025, providing details for both low and high-cost areas.
Key Takeaways: This episode serves as a valuable resource for first-time homebuyers navigating the FHA loan process, offering clear guidelines and expert insights.
00:01:00: Introduction to FHA loans and their benefits for first-time homebuyers.
00:05:30: Detailed discussion on 2026 FHA loan requirements and credit score criteria.
00:12:15: Explanation of FHA mortgage insurance and premium calculations.
00:20:00: Pros and cons of FHA loans compared to other mortgage options.
00:25:45: Overview of 2025 FHA loan limits for various regions.
00:05:30: Detailed discussion on 2026 FHA loan requirements and credit score criteria.
00:12:15: Explanation of FHA mortgage insurance and premium calculations.
00:20:00: Pros and cons of FHA loans compared to other mortgage options.
00:25:45: Overview of 2025 FHA loan limits for various regions.
#FHAloan #first-timehomebuyer #2026housingmarket #creditscore #mortgageinsurance #downpayment #FHAloanrequirements #debt-to-incomeratio #primaryresidence #steadyincome
See show notes: https://inlet.fm/easy-to-understand-real-estate/episodes/698a212575c1ccf9d5931cf9
Learn more about your ad choices. Visit podcastchoices.com/adchoices
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By Jeb SmithAre you a first-time homebuyer considering an FHA loan to purchase your first house in the 2026 housing market? This episode provides a comprehensive guide to understanding FHA loans, including the latest requirements for 2026.
FHA Loan Requirements for 2026:
- Minimum FICO® score of 580 for a 3.5% down payment.
- FICO® scores between 500 and 579 require a 10% down payment.
- Mortgage Insurance Premium (MIP) is mandatory for all borrowers.
- Debt-to-Income Ratio must be under 57%.
- The home must be the borrower's primary residence.
- Borrowers must demonstrate steady income and provide proof of employment.
Understanding FHA Mortgage Insurance:
FHA loans require both upfront and annual mortgage insurance premiums. The current upfront mortgage insurance premium (UPMIP) is 1.75% of the base loan amount, applicable regardless of the amortization term or loan-to-value (LTV) ratio.
Mortgage Insurance Calculation:
To calculate the monthly mortgage insurance premium, use the formula: Purchase Price x Percent of Amount Financed x 1.0175 x 0.0055 / 12. For example, with a $350,000 purchase price and 3.5% down payment, the monthly premium is approximately $157.51.
Learn about the pros and cons of FHA loans and how they compare to other mortgage options. The episode also offers insights into FHA loan limits for 2025, providing details for both low and high-cost areas.
Key Takeaways: This episode serves as a valuable resource for first-time homebuyers navigating the FHA loan process, offering clear guidelines and expert insights.
00:01:00: Introduction to FHA loans and their benefits for first-time homebuyers.
00:05:30: Detailed discussion on 2026 FHA loan requirements and credit score criteria.
00:12:15: Explanation of FHA mortgage insurance and premium calculations.
00:20:00: Pros and cons of FHA loans compared to other mortgage options.
00:25:45: Overview of 2025 FHA loan limits for various regions.
00:05:30: Detailed discussion on 2026 FHA loan requirements and credit score criteria.
00:12:15: Explanation of FHA mortgage insurance and premium calculations.
00:20:00: Pros and cons of FHA loans compared to other mortgage options.
00:25:45: Overview of 2025 FHA loan limits for various regions.
#FHAloan #first-timehomebuyer #2026housingmarket #creditscore #mortgageinsurance #downpayment #FHAloanrequirements #debt-to-incomeratio #primaryresidence #steadyincome
See show notes: https://inlet.fm/easy-to-understand-real-estate/episodes/698a212575c1ccf9d5931cf9
Learn more about your ad choices. Visit podcastchoices.com/adchoices