Types of Mortgage Loans Explained | Buying a Home 101 | Conventional. FHA, VA Loans | Your Rich BFF

​ @Your Rich BFF is back this week to help you understand the different types of mortgages to buy a home. Whether you're a first time home buyer or just brushing up on Real Estate, this video will help you understand some options to make investing in property more feasible For more information, visit www.YourRichBFF.com Sign up for my weekly newsletter: www.YourRichBFF.com/subscribe Chapters 0:00 Intro 1:14 Federal Housing Administration (FHA Loans) 3:04 Conventional 97 Loans 4:22 USDA Loans 5:50 VA Loans FEW THINGS TO KEEP IN MIND (LINKS INCLUDED): 🏡 Conventional Loans 🏡 1. These are only for first time homebuyers (kind of a misnomer because it doesn’t actually have to be your first home, you just can’t have owned a home in the past three years) 2. For most locations the home can’t cost more than $453,100, and in high cost areas, this amount is increased to around $679,650. 3. There’s even a look up tool to check what the cap in your area would be: https://ami-lookup-tool.fanniemae.com... 4.The home has to be your primary residence 5. And as mentioned, you will pay PMI until you hit 20% equity 🏡 Three Types of USDA Loans 🏡 1. A direct loan from the USDA - these are for low income and very low income families and individuals. Income limits will vary by location - if you're curious you can look them up here: https://www.rd.usda.gov/sites/default... 2. Similar to an FHA loan, the USDA can also guarantee a mortgage issued by a participating local lender. This lets you get a competitive mortgage without putting any money down, but again, as with the FHA loan and convention 97, since you’ll be putting less than 20% down you will have to pay PMI - Private mortgage insurance. 3. the USDA offers loans and even GRANTS for home improvement. Yes - Grants. As in free money. Packages can also combine a loan and a grant, providing up to $27,500 in assistance.