This week on the Messy in The Middle podcast, Ed and Jefi discuss FHA loans. They highlight the pros and cons of FHA loans, including lower down payments, lower credit score requirements, and higher income-to-debt ratios. They also mention the Mortgage Insurance Premium (MIP) and the loan limits that vary by county. Jefi and Ed emphasize the importance of understanding FHA loans as a buyer, seller, or agent, and recommend contacting a lender for more information. They also provide tips for agents on how to counsel buyers on choosing between FHA and conventional loans.

QUOTES

• "Something that's really interesting about FHA loans is they follow HUD Housing and Urban Development guidelines. Did you know that most loans and when I say most, almost all follow those exact same guidelines because they're such a great guideline to follow? So most banks follow those, too.” -Jefi Moultrie [02:02]

• "Here's a homework assignment for all you agents out there. Call your lender. And this is for me, too, because I don't know that number off the top of my head. Just check for the counties that you work, and what the current FHA limits are. That's a really good number to know." -Ed Billings [08:56]

TIMESTAMPS

[00:00] FHA loans 

[02:45] Pros of FHA loans

[05:30] Cons of FHA loans

[09:31] FHA loan leniency 

[09:59] Understanding the strength of an FHA buyer as an agent 

[10:36] Strategy for choosing between FHA and conventional loans in multiple offers 

[11:53] Always call your lender!

RESOURCES

• Never Split the Difference
• The Five Dysfunctions of a Team
• The Peak Experience
• The U.S. Housing Market Has Peaked
• Why Rising Mortgage Rates Push Buyers off the Fence
• The One Thing Every Homeowner Needs To Know About a Recession

CONTACT

Messy in the Middle: messyinthemiddlepodcast.com

Ed Billings: edbillings.com