What Type Of Loan Should I Get To Buy House

When you want to buy something, you’ll usually find a reason to buy it, so the first thing I’ll do is give you a reason not buy a home in the first place. Here are two things that disqualify you from buying a home.

First you have consumer debt or student loan debt: pay that stuff off before buying a home, it’ll make life a lot easier when you don’t have any debt, because you’ll have Less things to pay.

Second: you don’t need a house, you’re buying a house ecuase you think it’s the right step to take, but you don’t have a wife, or kids or any reason really to buy a full blwo house. For those people, I say rent a little longer until it doesn’t make sense to rent or until you actually need a house, and you buy something , buy according to your needs not future prospects per say.

First: know hat any government program should just be a cherry ontop and not the reason you buy a home

Things like grants

Things that tax free withdrawals form retirement account

And whatever else is being offer

????Call Me????: https://bit.ly/30IBr0i

????Second Channel????: https://bit.ly/3c4sVPS

????????‍????Financial Freedom Course????????‍????$100 OFF CODE: LONGTERM
Link: https://longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom

????MY M1 FINANCE PORTFOLIO???? PLUS $10
Link: https://m1.finance/37SHd4241z-N

Common Loans

You’ll usually hear about these 3

First conventional loans, FHA loans, and USDA loans

And the time frame is also important, 15 years or 30 years

And how much will you put down 0%, 3.5% or 20% or pay cash

Conventional Loan:

It’s a loan that’s not guaranteed by the government.

So usually, the interest rates are a little higher, and the criteria to qualify are a little strict.

And usually requires a higher down payment.

They’ll look into your income, assets, employment and all the regular thigs they usually do when qualifying someone

And the required downpayment is going to be based on your profile, sometimes 3% and sometimes 20% based on your debt-to-income ratio also

FHA: Stands for the Federal Housing Administration

And this program was created to help mke it easier for people to be able to bbuy a home and the laon guranteed by the government, so the bank is a lot open minded about who they lend to

Its like student loans that guaranteed by the government

Some highlights: credit score atleast 580 and 3.5% downpayment but you could get a away with a lower credit score if you put down more for the downpayments

And it has to your primary residence and you have to show steady income

Those are usually the primary types but sometimes people get a USDA, which a loan guranteed by the departmetn of agriculture

And you can get away with putting down 0

But you have to buying the home in a rural area where the population is less than 35,000

Many Options But what do I recommend

You want to be able to put down a solid downpayment.

Anywhere form 10-20% and their reason

And you also want to make sure its on a 15 year mortgage

Here an idea:

When you put down less than 20%% you will PMI, private mortgage insurance

Its insurance you pay to the lender in case your loan defaults so they can be covered

Its not insurance for you and it can cost you a chunk of money

But more importantly:

You don’t want to buy a home where you have to put down every penny you have just to get into the home, and if something goes wrong you end up struggling

The goal is not to buy a home, the goal is to own a home

So saving up being debt free, having an emergency account and putting down 10%, make sure you are in the best possible position to just that

* PRO TIP*
INFORMATION IS EVERYTHING
????1 on 1 Talk + My Budget + Stock Investments????
https://www.patreon.com/tommybryson

????Merch????
https://teespring.com/stores/tommybryson

✅2 FREE AUDIOBOOKS✅
https://amzn.to/2Enayo8¬¬¬

????M1 FINANCE $10????
https://m1.finance/37SHd4241z-N

????ACORN FREE $5????
Link: https://acorns.com/invite/38EYSU

⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: https://amzn.to/2VGbxt9

????????‍????DISCORD PRIVATE GROUP????????‍????
https://discord.gg/EcZEHpA

My Camera Gear: https://www.amazon.com/shop/tommybryson

✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w

????All My Social Media????
Link: https://linktr.ee/tommybryson

*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

source