| by Kenneth Chase | 100 comments

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


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

Sarkis Aleksanian

Aug 8, 2018, 6:42 am Reply

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!

profobones

Apr 4, 2019, 10:55 am Reply

What if I want use this loan to build and sell a house after the required first year of residence?

SETHBMW

Apr 4, 2019, 4:04 pm Reply

VERY GOOD! A MAN THAT MAKES YOU UNDERSTAND

Stacie Boyle

Apr 4, 2019, 9:50 pm Reply

Do you work with people nationally?

TayloreRenee

Apr 4, 2019, 5:43 am Reply

This is very informative, thank you!

MrJubileej

Apr 4, 2019, 4:04 am Reply

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

Elisa Perales

Apr 4, 2019, 1:31 am Reply

I need your help

jay thomas

Apr 4, 2019, 12:47 pm Reply

Chris the mortgage pro cuts no corners and gives you the real deal…..

I’m on my way, Thanks Chris!

Me Me

Apr 4, 2019, 4:37 am Reply

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!

island girl tdavis

Apr 4, 2019, 4:58 pm Reply

Thank you, can you refer me to a pro living in Philadelphia area

Jack Obrein

Apr 4, 2019, 10:37 pm Reply

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?

nikki82279

Apr 4, 2019, 3:56 am Reply

Excellent video ?

simplicity!

Apr 4, 2019, 12:56 am Reply

Love the video and all the simple explanations.

Tim Luxter

Apr 4, 2019, 10:15 pm Reply

This is a great video! Can’t help but think the guy looks like Joe Mantegna in Baby’s Day Out though! ?

James Tyler

Apr 4, 2019, 12:13 am Reply

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.

Coleton Shiver

Apr 4, 2019, 9:56 pm Reply

Can an FHA loan be used as a construction loan if I am buying land and planning to build a house

Ed Ruchalski II

Apr 4, 2019, 4:34 pm Reply

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

Harvie Gallagher

Apr 4, 2019, 5:26 am Reply

Can you send me atext about FHA loan

EndlessEnthusiasm

Apr 4, 2019, 1:06 pm Reply

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!

Shonda Lewis

Apr 4, 2019, 1:34 pm Reply

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

wanda alexander

Apr 4, 2019, 11:12 pm Reply

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.

Yahuchanan Judah

Apr 4, 2019, 1:27 am Reply

Do you work with people in Ga

marie charles

Apr 4, 2019, 6:28 pm Reply

Where you located pls

J C

Apr 4, 2019, 2:13 am Reply

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?

Frank Nizzy

Apr 4, 2019, 5:33 pm Reply

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

Play 838

May 5, 2019, 1:58 am Reply

Thank you so much, I was so lost!

Zeezy Wazzy

May 5, 2019, 12:06 am Reply

Is there anyway to get around job history?

I like apples I like apples

May 5, 2019, 4:18 am Reply

Gotta love this guy

sharene myers

May 5, 2019, 7:07 am Reply

Can you buy a house if your retired with income from a trust?

Rychel Rychell

May 5, 2019, 8:35 am Reply

His big ass eyes makes me not trust this dude. Lol

Eduardo silva

May 5, 2019, 2:23 am Reply

Excellent video very informative do you work in TX?

albert rivera

May 5, 2019, 3:54 am Reply

Chris can i still get approved if have 4 negative thins in my credit with 605 FICO

FHA Condos

May 5, 2019, 1:38 pm Reply

Great info for FHA loan borrowers!

Ivan Akinfiev

May 5, 2019, 11:17 pm Reply

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?

Craig McDonald

May 5, 2019, 11:58 pm Reply

Hi i got a friend that wants to sell me his house now. Can you help me get a loan asap!

Miss 1978

May 5, 2019, 10:03 pm Reply

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.

F.A. H.

May 5, 2019, 12:08 am Reply

What about getting home inspections?

Baby Bubba

May 5, 2019, 6:33 am Reply

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

Rasheka Tukes

May 5, 2019, 10:23 pm Reply

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?

prioleau2012

May 5, 2019, 6:01 pm Reply

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

Dawn Sok

May 5, 2019, 1:58 am Reply

How long is a pre approval letter good for ?

chatito bbq

May 5, 2019, 3:35 am Reply

Wht do you mean taxes? I thought you need 2 years of you're w2 taxes from were?

Evelyn C

May 5, 2019, 7:32 pm Reply

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

Earl Thompson

May 5, 2019, 12:01 am Reply

Great tips

Faatimah Maddox

May 5, 2019, 6:18 am Reply

Hey Chris can I get approved with 574 credit

Edward Maduena

May 5, 2019, 12:09 am Reply

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?

Carlos Charleston

May 5, 2019, 12:29 am Reply

I like him ?

Liz Gaby

May 5, 2019, 1:58 am Reply

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!

Fresh Reserve

May 5, 2019, 5:00 pm Reply

Is it possible being at your job for 14 months? Get fha loan

Kaleb Rowland

May 5, 2019, 8:28 pm Reply

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?

Ryan Allen Bell

May 5, 2019, 7:02 am Reply

This guy looks like he related to Jordan Belfort! Lol

SEC13

May 5, 2019, 6:18 pm Reply

I’m on disability what options do I have?

AMN GLOBAL

May 5, 2019, 12:22 am Reply

Great insight. Ideally I still would want to put down %20 payment

Geary Lynch

May 5, 2019, 2:39 am Reply

I would like u to help me buy a house

F 22

May 5, 2019, 10:30 am Reply

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.

Dewanna Terry

Jun 6, 2019, 7:39 am Reply

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

Tushi Deva

Jun 6, 2019, 2:10 pm Reply

What if i have one year income to show but its a decent income 70 grand a year ?

NPC

Jun 6, 2019, 2:09 am Reply

Would we be able to get a loan for 200-250k with 60k income, and 10% down, with not too much debt?

Catz Truck

Jun 6, 2019, 5:28 pm Reply

He sounds like he knows his stuff.

Sweet Tee

Jun 6, 2019, 6:48 am Reply

Thank you Chris!

Tamara Reed

Jun 6, 2019, 3:01 pm Reply

New subbie. Great information and you got straight to the point!

Bliss Limo Service

Jun 6, 2019, 9:21 pm Reply

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.

Roland Cordero

Jun 6, 2019, 1:38 am Reply

How much do you charge to do an FHA loan? What is the out of pocket cost by the borrower?

Roland Cordero

Jun 6, 2019, 3:41 am Reply

Thank you.

XRP Messiah

Jun 6, 2019, 4:47 am Reply

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

Shawn Afshar

Jun 6, 2019, 7:15 am Reply

Out of these areas where do see a better investment
Denver
San Diego
Irvine

THE Offical Page Of Joey Savage SERVE N OBEY

Jun 6, 2019, 9:23 pm Reply

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

Andrea Decena

Jun 6, 2019, 4:04 pm Reply

Hi. I’m retired can I buy a house with that kind of income?

Deja Vu

Jun 6, 2019, 5:13 pm Reply

Thanks for getting to the point with very accurate information!!!!!

M M

Jun 6, 2019, 3:17 am Reply

You are the best. Thank you..?

Dawson Guzik

Jun 6, 2019, 7:31 pm Reply

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?

Luis Fernandez

Jun 6, 2019, 2:57 am Reply

Can i get approved woth 540 credit score 12k down ?

Prod. AD

Jun 6, 2019, 2:53 am Reply

Dope

johnny perez

Jun 6, 2019, 4:45 pm Reply

Great video!!! Thank you so much for taking the time to share this information!!!

Gabriel Sanchez

Jul 7, 2019, 7:26 am Reply

Can you work with me? Im located in Washington state.

Whyareyoumadbro

Jul 7, 2019, 2:47 am Reply

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?

ShesReady2Live

Jul 7, 2019, 10:44 am Reply

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

W Wilson

Jul 7, 2019, 1:07 pm Reply

Outstanding breakdown

Bruh

Jul 7, 2019, 6:25 pm Reply

I haven't been with my job for 2 years. So i dont qualify for an FHA?

Manny Luna

Jul 7, 2019, 8:47 pm Reply

Could I use an FHA loan to buy a manufactured home? California

Jany King

Jul 7, 2019, 3:25 am Reply

Just wondering how much do I have to make yearly to qualify.?

avery leleux

Jul 7, 2019, 2:29 am Reply

Crazy eyes

DJ STICKX B

Jul 7, 2019, 5:50 pm Reply

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

Kim Rosa

Jul 7, 2019, 12:03 am Reply

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?

Sans the spooky scary skeloton

Jul 7, 2019, 8:53 pm Reply

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

Daisy D

Jul 7, 2019, 11:54 pm Reply

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

Alaina Linda

Jul 7, 2019, 1:54 am Reply

Thank you this was amazing!

Playa BoN3

Jul 7, 2019, 2:03 am Reply

Do you work in Mississippi??

Tee Fletch

Aug 8, 2019, 2:35 am Reply

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?

billy3287480

Aug 8, 2019, 7:14 pm Reply

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?

Tony Gordon

Aug 8, 2019, 12:48 am Reply

He just made the process so easy. Very informative.

Danielle Carr

Aug 8, 2019, 7:56 pm Reply

I heard with FHA your down payment can be as low as O%. Is this true?

Yvonne Weinstock

Aug 8, 2019, 4:30 am Reply

Do you work with anyone in Alabama? Thanks for this simple and informative breakdown video ?

The Scribe

Aug 8, 2019, 1:04 am Reply

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.

Isidro Cortes

Aug 8, 2019, 4:19 pm Reply

Amazing video , very detailed oriented
Thank you !!!

V. Joyner

Aug 8, 2019, 1:50 am Reply

This is one of the best videos on homebuying i have seen. Thank you.

Laurie Borbon

Aug 8, 2019, 3:00 pm Reply

Wish I had seen this a month ago.

Laurie Borbon

Aug 8, 2019, 3:01 pm Reply

An FHA loan means a higher monthly mortgage payment????

Alex Rathert

Aug 8, 2019, 1:05 am Reply

Hi! Thank you for the video! I have a quick question for you. My husband is paid a flat rate for his job, and he is the primary income. Is the flat rate averaged over the course of 2 months since it’s not technically salaried or hourly? Thanks!

Bo Zi

Aug 8, 2019, 3:47 pm Reply

Noy sure how this appeared on my recc list but I learned about theae FHA loans a while back and almost made a mistake of selling my first house to an FHA buyer. Good thing I didn't. Since then, owned 4 homes. I always specified that I prefer a cash buyer or a traditional loan buyer.

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