[FHA] FHA loan | FHA loan process [MORTGAGE] FHA Mortgage Loan [Home Loans]

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Hey this is Chris Trapani the
mortgage pro. This video is gonna teach you eight steps of what you need to do
to buy a home using an FHA loan. It’s gonna give you a guidelines, it’s gonna
give you all kinds of things, what documentation you’re gonna need and how
the whole home buying process works with an FHA loan! Step number one – FHA is not
an actual loan. FHA stands for Federal Housing Administration and what it does
is it ensures the loan, so that people with a small of down payment can buy the
home. Otherwise without the insurance the risk
would be too great – nobody can buy a home in that in that situation.
Step number two as low as a five hundred FICO score you can buy from five hundred
to five seventy nine – ten percent down From five eighty and above we’re looking
at only three and a half percent down. Gone are the myths of the twenty percent down
to buy a house. You can buy your own house with as little as three and a half
percent down with an FHA loa. Step number three – here’s a question people always
ask me Chris I have a bankruptcy well with an FHA loan two years must have
elapsed from the time it was discharged till the time you can buy. Chris I have a
foreclosure – I had a short sale. Three years must have elapsed from the day of
the short sale or foreclosure and you could buy your own home again. Step
number four here’s the debt ratio – if you make ten thousand dollars a month and
I’m not saying if you make 10 grand but I’m just giving it to you for even number
purposes – you can go to forty seven percent of that forty seven hundred
dollars for qualification purposes for the house.
fifty seven percent when we take the total house payment and the car payment
and the student loans child support alimony credit cards all the debts put
together – fifty seven percent so take your monthly income before taxes fifty
seven percent will include your debt forty seven percent will be the house
payment it must require and here both those criteria. Step number five –
income requirements, well in most cases you must have a two-year history of
working in the same field in the same industry example if you just started a
job working for Federal Express delivering packages and you started
doing that today well if you don’t have a history in delivery for the last two
years you’re gonna have to wait two years going forward if you worked for
ups for the last two years or the post office or something in the same type of
industry then as long as you have that two year history we’re good even though
you’ve just started the new job. Now if you’re self-employed what we’re probably
gonna do is we’re gonna average your income over two years that’s your net
income that’s what after you write everything off all your expenses and if
you just have a job and maybe your salary very simple but if you’re hourly,
we’re gonna calculate you hourly and we’re gonna average your overtime over
two years so we can look into things in a number of different ways. We’re experts
at figuring this out. Now once in a while people say to me, Chris I’ve only been
doing this six months and I ask did you get an education in this field maybe a
college degree maybe a certificate program maybe you went to a year of
training to become a radiologist or a radio technician that type of thing well
we can use that in lieu of the two years experience so there’s a lot of tech tips
tricks trades little things we can do but you need to show me what it is so I
can help you qualify for that loan. Step number six – Documentation. We must prove
everything must be forensically proven on paper – how much do you make – how much have
you made for the past two years. So the documentation I’m going to start with
I’m going to tell you we’re gonna need two years w-2s from your job we’re gonna
need two years federal taxes once in a while we won’t need them but we will
require getting them in case we’re going to need one month’s
pay stubs so if you’ve been on the job for 10 years or you’ve been on the job
for two months I need the last month’s pay stubs and this is for all borrowers
so if there’s a husband and wife both working need it for both we also need
two months bank statements for any accounts that you might have savings
account retirement account check an account all the different banks or
credit unions or whatever type of money accounts we need two months worth and we
need all pages. If a page says this page is intentionally left blank
I need that page. It sounds silly I know, but those are the guidelines also need
your driver’s license and social security card this is super important in
today’s day and age of you know what we have to deal with and the Patriot Act
but it’s federal law we have to get those documents now once in a while if
somebody’s had a bankruptcy in the past we need the bankruptcy papers if you’ve
been divorced we need the divorce papers we need some
extra documentation and that’s a case-by-case basis we’ll let you know
what they are based on your individual circumstance so the paperwork is super
important if we ask for 10 things and we get nine it’s kind of the same as having
zero we need them all. Step number seven I’m gonna teach you what the loan process is
and how that works what I like to do is get you first of all not pre-approved
most lenders out there – they do these pre- approvals and well they’re only worth
the paper that they’ve written on what I like to do is gather all documentation I
actually send it to the underwriter the underwriter is the person who approves
or denies the file I send all the paperwork as if we already have a
property we’re ready to go I send you a credit I send you bank statements I send
you everything that it takes and I let the underwriter say yes you’re approved
we need this additional documentation which is very common but when you make
an offer you’re gonna do it from a position of strength so we get you
pre-approved and now what’s gonna happen is you’re gonna go with a realtor if you
don’t have a realtor I know all the best most experienced realtors in the
industry I’ll give you a great realtor now you’re gonna go with the realtor in
your price range he’s gonna show you houses condominiums whatever you’re
looking for in your individual circumstance and if you find that one or
two properties that you say hey this is the one what happens is they the realtor
is gonna write an offer and submit it to the agent who did the listing and I’m
gonna assist them with helping to get your offer accepted in today’s day and
age there are seven to ten offers for every property on the market because
there’s a shortage of houses and this is driving the prices up so time is of the
essence you want to get this going now here’s what happens they’re gonna review
the offers they want to see which property and which offer is going to
make the most sense for them obviously they’re gonna look at which one’s gonna
pay us the most money they’re gonna look at which one is most likely to close
that’s super important because sometimes there are offers that are not very good
not very strong borrowers so they’re gonna evaluate all these things that’s
where I get involved I call them up and tell them this is Chris the mortgage pro
and I have a slam-dunk deal ready to go that is not pre-approved it’s already
approved that will raise your offer near the top of the list if not to the top so
that’s a very big deal once the offer is accepted what happens is we’re going to
start with the loan process there’s disclosures and paperwork we’re in a
very bureaucratic age in the mortgage industry and the whole mortgage industry
is are gonna require you to sign paper about this thing thankfully we can do it
electronically today you could just click on your computer or on your phone
and accept those disclosures the next thing we’re gonna do is we’re gonna
order title we’re gonna open escrow and we are going to order the appraisal we
handle all of that so you don’t have to and again the underwriter is going to
look at the appraisal they’re gonna look at the title they’re gonna look at
escrow see if everything is acceptable is there any additional paperwork that
we need from you the borrower has any changed and when we put all that
together and they issue what’s called a clear to close that’s when we start
doing the happy dance we’re excited everything’s going good we start the
closing proceedings there’s gonna be a paper that’s gonna be emailed to you
call the closing disclosure and that’s where it has the final numbers because
everything must match to the penny and you’re gonna sign this closing
disclosure and three days later you’re allowed to sign the loan documents and
usually either sometimes that day or usually the next day of the day after we
close the loan it funds the loan we wire the money to pay it off and then the
escrow and title company work together to record the loan the when’s once it’s
recorded the property is now finally a hundred percent it’s your property
you’re a homeowner and the next thing that happens is the realtor is gonna be
all excited to come and present you with the keys so you can open the door to
your own home at that point we have fired your landlord that’s a big deal
step number eight is really simple call me up
just call me text me email me whatever it takes
call one of my assistants We’ll get you the numbers really simple we sit
down we go through the process if you want
and you don’t have time and time is of the essence here’s what you can do you
go to my website www.FireYourLandlord.info We’re going to Fire Your Landlord!

100 comments

  1. The most informative FHA Home Ownership process video on YouTube. Hands down!! This is the video that made me realize I too can become an owner. I'd like to thank you for sharing your knowledge and expertise. I have forwarded your videos countless times to friends and family and hopefully they too can Fire Their Landlord. Thanks again!

  2. I am a Realtor in the South Bay area in California and I just love your very informative videos!

  3. Very informative and very inspiring video. I'm looking to buy my first home next year after I finish paying off my car loan.

  4. Hello Chris, I am a first time home buyer and want to buy a house that is 210k. What would benefit me the most a 3.5% down payment or a 20%. Is it better to pay mortgage in 15 or 30 years?? Sorry for all the questions it’s just overwhelming trying to buy my first home. THANK YOU IN ADVANCE!

  5. Question! How to you get your bank to wire the earnest money to the title company?
    I had a deal fall threw because I had 48 hours to wire it. My bank said that I needed a commercial account to get that done.
    Suggestions?

  6. Truth is, if you need FHA you probably can get into a home. But over time you won't be able to afford the upkeep of the home.

  7. Is there a bank that will do an fha for under 580 credit? They don’t even consider it, down payment or not.

  8. Curious.

    I spent 3 years at a job in my hometown. I moved away 5 years ago and changed job fields.I have been at my current job for 1.5 years. I am planning on returning home to take a position at my former job, switching back to my old field.

    Meanwhile my spouse has been at her job for 4 years and will be taking a job in the same field when we move.

    Is this usually acceptable in terms of job/income history?

    Thanks for the great info!

  9. I live in Indiana and my lease is up in November when should I start the process? Also I want to get the down payment assistance that Indiana provides. Thanks in advance

  10. I'm in the process of closing on a fha but because I put my down payment in the bank as a cash deposit I'm not able to use it.

  11. I didn't hear about student loan debt or collections on the credit report. Or is it just score based and collections do not matter?

  12. Good info Chris… I'm in Virginia and I'm a first time home buyer. Credit score 671 and same job for 5 years making around 50,000 a year. I have about 9,000 In savings account. What type of options do I have that will be affordable and do you help with Grants for down payments and closing costs? I'm totally new to this home buying and just want some honest information and not to be screwed over due to lack of knowledge. Thanks

  13. I'm a 20 year old, (for now) uneducated Brit. I'd like to move to the US and start a property portfolio. What's the easiest way to get a property that me and my wife can live in and that we can also rent some of the rooms out so that it pays our mortgage off and pays us a little extra on top?

  14. I have 2 years of W-2’s and taxes but I messed up my 2017 taxes. I filed both my 2017 and 2018 this year but I mistakenly filed my 2017 taxes on a 2018 1040 form. I submitted a letter and myW-2s to the IRS but I was told it could take a long time before they get back to me. Can I get approved for a FHA loan before that is resolved? I shouldn’t owe any money to the IRS but I’m not sure what to do.

  15. Is the loan only for single family homes or can you acquire duplexes or multi family properties as well?

  16. First thank you for such an informative video. I have received conflicting information regarding the home buying process for those of us in a Chapter 13. I’ve heard that you can qualify for a FHA loan as soon as 12 months into Chapter 13 bankruptcy with 12 months of on time payments and trustee approval or as soon as the Chapter 13 is fully paid and discharged. Is this correct?

  17. Will it look bad to loaners if you have overdrafts on your bank statements but you paid it off when got paid

  18. Would I be able to do this at age 18 I’m doing to start saving up till December because here where I rent they’re going to tear down and I want to buy a home ASAP and not be renting wasting my money

  19. Can the FHA loan be used to buy a piece of land and set it up with a well and power so it can be ready for the home and at the same time build it from scratch?
    Or does the house have to be already built?

  20. I have a question that's bothering and I'm scared to scare the loan officer lol
    My mom told me I could ask for a higher loan . If the house costs 100k i could ask for 130k to do repairs if needed, maybe get a new car and buy all new furniture. Is that possible? People that have bought homes around me seem to be mean about explaining how or who they went to, sometimes it feels like they dont want others to be blessed by owning a property, I can tell by their tone and body language which they can suck it cus either way I'm on it. My loan officer said I could do the fha loan with a 3.5% down equalling $4.500 but I saved up to $6000 and keep saving just in case and make 40k my husband 45k a yr but he will not be included due to status issues.
    Also I stop working for 18months..baby.. but i do have more than 2 years in the same line of work and started working back again in nov 2018 currently employed in the same place.. my w2 for the past 2 years are tied to him and obviously he was the one making all the income…is that going to be a problem?
    Btw I've subscribed!

  21. I’m a 19 year old with 2+ years proof of work experience. Only problem is that it’s me being independent contractor, not an employee. Will I still get approved for the FHA? I’m a model signed around the country, and i’d like to use this as leverage for getting a loan. Will it work?

  22. Thank you for the information I’m currently saving for a house here in California, when I’m ready I really want to get in contact with you so you can help me with the process.

  23. This information and the way you delivered it was the best. Thank you. I'm trying as we speak to buy a home

  24. Awesome video! Chris I have some clients that are looking for loans some have low ficos you said you can work with a 580 right? We are trying to increase their fico as we speak.

  25. Oh man… I watch tons of videos, you touched all the points I needed to know___ I watch this video 5 times in roll with pen and paper in hand___ thank you pal

  26. This is bullsht I got to rely my life on someone picking me out of a bunch of other people no wonder it takes so long it's you vs 50 people on same property you're hoping you get picked God I see now why I been getting nos playing law of averages

  27. If we have a total house income of 55,000 a year between 2 of us and were looking at a house in the 150,000-175,000 range with a 6% down do you think we could get approved?

  28. I just started a job selling insurance making $90k+ per year, where as my previous job I made 22k. I’ve been with my employer going on a year in November. So currently 8 months, does this mean I cannot apply for a FHA loan or does this mean they will average last year with the year of my new job?

  29. Im going to miss out on the whole "handing over of the keys" moment because Im buying the place Ive been renting for years. So anticlimactic, lol

  30. Can you do it with just your w2s or do you need w2s and tax returns? Im getting different stuff from different people..guy at my job said just his w2s was needed with the other stuff

  31. Hi, so my fiancé an I plan to relocate in Florida and purchase a home with a FHA loan, how would us having new jobs out there affect our chances for the loan?

  32. Thanks I needed this tryna navigate a few things and get ready to buy in next 6-8 months

  33. Thank you Chris. This was very informative and straight to the point. My husband and I own a business but have been looking to get an FHA loan for a home that is on the market and have been eyeing for awhile now. I think we may have to wait for about another year unless i go back to Law school in lieu of the 2 year self employed requirement for qualification purposes. This was very helpful. Thank you

  34. Hey will I get approved for a loan amount of $220,000 or higher in Florida??? I have a 610 credit score. I make $4200 a month. Paying about $1,965 a month in expenses (car note, credit card bill, rent) I been on my job for 5 years. I have 3.5% right now and live in Polk county Florida… but the houses here in the area I want is $230k or higher. Do I need to do something more to get approved for that much?

  35. I looked at a mobile home today and they said it wouldn’t be fha approved because it’s on a dirt pad and not a concrete pad. My lender says that it just has to be anchored to the ground. Doesn’t matter if it’s concrete or dirt as long as it’s anchored. Clayton says it has concrete. Who’s right?

  36. Damn. I never wanted to own a house but the rent rates in Chicago are INSANE!!! $1500 – $2000 for 600 sqft. Everyone tells me I could be in a house for the amount I pay for rent. I may have to look into those FHA loans. 3.5% down payment I could get something nice.

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