If you're a first-time homebuyer looking to purchase a home using an FHA loan in 2024, this episode provides essential insights into the latest FHA loan requirements. We'll cover crucial aspects such as credit score criteria, employment history, and down payment requirements. Additionally, you'll learn about the pros and cons of FHA loans and how to perform basic FHA calculations related to mortgage insurance.

Key Highlights:

• FICO® score of at least 580 requires a 3.5% down payment.
• FICO® score between 500 and 579 necessitates a 10% down payment.
• Mortgage Insurance Premium (MIP) is mandatory.
• Debt-to-Income Ratio should be less than 57%.
• The property must be the borrower's primary residence.
• Borrowers must have a steady income and proof of employment.

We also explain the calculation of the monthly mortgage insurance premium for an FHA loan. For instance, using a $350,000 purchase price with 3.5% down:

$350,000 x 96.5% = $337,750
$337,750 x 1.0175 = $343,660
$343,660 x 0.0055 = $1,890.13
$1,890.13 / 12 = $157.51 per month

Explore the new 2024 FHA loan limits for both low-cost and high-cost areas, and understand how these affect your purchasing power. Additionally, we discuss the current real estate market trends in California, particularly in Orange County, and speculate on potential changes in the housing market for 2024.