Ep. 19: The 3 Most Common Types Of Mortgage Loans For Homebuyers

Ep. 19: The 3 Most Common Types Of Mortgage Loans For Homebuyers

Hello, Robert Rico here at California Realty
Training. Thanks for coming to this week's video blog,
good to see you. Listen: want to become a real estate agent? That's fantastic news. I'm loving it. Listen, you might want to know a little bit
about what your buyers are going through. Let's talk about buyers for a second.

When it comes to buying a house, oh! It's very, very exciting. You're going to see this when you do have,
or are ever in a position to buy a house. Now, the majority of my career, I would say
probably 60-70% of the time, I work for the buyer, and man, it is fun! It's fun because the buyers get emotional. It's so exciting. Oh my god, they're going to buy their first
house or their first investment property! It is what it is, but it's very, very exciting,
it's very emotional. Many times the buyers don't know, or aren't
aware of, the down payment required. It all depends on the type of loan they want
to get, of course. What I want to do is, I want you to be familiar,
of course, with some of the most typical home loans out there, and the type of down payment
that are required to get these home loans. Now, let's first talk about your very, very,
very, very common, common loan.

That would be, of course, your conventional
loan. Your conventional loan, what does that mean? Twenty percent down, typically twenty percent
down. Debt-to-income ratios, you have to have a
good, solid debt-to-income ratio, which means you can't have too much debt compared to your
income. Also, of course, your credit score has to
be pretty darn strong. Again, it all depends on the situation, but
the biggest thing here, of course, when it comes to down payments? It's typically substantial, and typically
it's 20% down.

The next one you might want to consider for
your buyers … if, again, they're not familiar with the buying process, if they're not sure
if they have enough money in their bank account, or in their pockets, or under the mattress,
whatever it may be … is FHA loans. FHA loans are pretty darn nice. These are the ones that we'd use, my wife
and I have used, for the last … close to 20 years with our buyers. This is a great program for first-time buyers,
but it doesn't mean it's just for first-time buyers. It's a great program, a great advantage for
first-time buyers. Why? Because it's only 3.5% down payment.

ca real estate school

That's pretty darn reasonable. Only 3.5% down payment. That compared to the 20% that a conventional
requires? My goodness, that's a lot cheaper. Let's put this into perspective. FHA loan, let's assume you want to buy a condo
for half a million bucks. Condo for half a million dollars. If you went conventional, 20% of half a million
dollars is what? That's right, $100,000. Kind of difficult to save. If you went 3.5% of half a million dollars,
looking at no more than maybe $20,000. That's feasible to save, or feasible for somebody,
a family member to help you out and maybe even gift it to you. You'd be so lucky if they can, but that would
be a nice option. So, conventional: 20% down. FHA loan: 3.5% down. Only regulation is this: there is a maximum
amount you can borrow on this program.

In LA County right now, it's $625,500 for
LA County. Now, the next one that's pretty doggone popular,
of course, is the VA loan. Now I know you've heard of the VA loan before. The VA loan is great because it's zero down. Did I say zero? Zero down payment. That's pretty doggone amazing. Now of course, it's typically good for the
active military and those who have served in the past. Zero down, the fees are pretty reasonable. In fact, the fees, just so you know … because
we want the vet to have it as easy as possible after all they did to serve our country … you
can request the seller of the house to pay for the buyers … in this case, the veteran
… to pay for their fees. Which means the veteran, when he purchases
his house, he comes in with zero. Not a penny. My brother did that, and it worked out beautifully.

Now listen: you want to be a real estate agent. I get it. You got to know a little bit about the seller,
and you got to know a little bit about the buying process for your buyers, which means
it goes back to: speak to a lender who offers great products. Now, by the products I mean the great types
of loans. Just now, we went over three: conventional,
FHA, VA. A lot of people out there who are not aware
of the type of loans that would benefit them. It's your job as a real estate agent to connect
them with a great lender who has all of these options.Thanks for coming with us at this
video blog this week. So glad to see you. Subscribe to our page right down here to your
bottom right, and we hope to see you next week. Have a great day..

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