Are you a first-time homebuyer exploring the FHA loan options in the 2024 housing market? This episode provides a detailed overview of the latest FHA loan requirements for 2024, including essential criteria such as credit scores, employment duration, and down payment amounts. Discover the pros and cons of FHA loans and gain insights into mortgage insurance specifics.

This episode covers:

• The necessary FICO® scores for different down payment percentages: A score of 580 or higher requires a 3.5% down payment, while scores between 500 and 579 require a 10% down payment.
• Mortgage Insurance Premium (MIP) requirements for FHA loans, including both upfront and annual premiums.
• The formula for calculating monthly mortgage insurance premiums: Purchase Price x Percent of Amount Financed x 1.0175 x .0055 / 12. For example, a purchase price of $350,000 with 3.5% down results in a monthly premium of $157.51.
• Debt-to-Income Ratio guidance, emphasizing the requirement to keep it below 57%.
• The necessity for the home to be the borrower's primary residence, along with proof of steady income and employment.

The episode also addresses the broader context of the 2024 housing market, touching on potential market trends and the risk of a real estate bubble. Insights into the Orange County real estate market are provided, with predictions for the housing market in California.

Jeb Smith, a Huntington Beach Realtor, shares expertise on navigating the FHA loan landscape with confidence, ensuring you are well-prepared to make informed decisions in the 2024 housing market.