Uploaded July 2026 | Updated September 2026, 2 weeks ago
Most buyers pick between FHA and conventional by looking at the down payment, and that one habit can quietly cost them hundreds of dollars every single month. In this video I break down the real differences between the two loans, credit score, mortgage insurance, debt to income, and the simple "effective rate" trick I use to compare them in seconds. Then I run actual numbers on a $500,000 home and show you how the same house, with the same down payment, flips from a conventional win to an FHA win based on nothing but your credit score. By the end you'll know exactly which loan to ask your lender about, and which one is quietly the more expensive choice for your situation.
Start Here 👇
✅ Ready to become a homeowner? Start your stress-free journey today: jebsmith.net/start?video=K2lX8XC2Y6Q
Watch This Next 👇
⏩ FHA Income Requirements -youtu.be/aOfhgnHjiAo
⏩ FHA Loan Requirements - youtu.be/CApGLR5u6j0
⏩ How much can you afford with FHA? - youtu.be/3Vhqiwabva0
FHA Approved Condo List - entp.hud.gov/idapp/html/condlook.cfm
FHA County Loan Limits - entp.hud.gov/idapp/html/hicostlook.cfm
NEW 2025 FHA LOAN LIMITS -
Low Cost Areas:
One-unit: $551,288
Two-unit: $693,063
Three-unit: $837,720
Four-unit: $1,041,038
High Cost Areas:
One-unit: $1,249,125
Two-unit: $1,599,375
Three-unit: $1,933,200
Four-unit: $2,402,625
What is an fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.
➡ What is fha mortgage insurance? Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.
➡ What is the current upfront mortgage insurance premium for fha loans? The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.
➡ How do you calculate the monthly mortgage insurance premium for an fha loan? Purchase Price x Percent of Amount Financed x 1.0175 x .0055 / 12
Example Below using a $350,000 purchase price putting 3.5% down:
$350,000 x 96.5 = $337,750
$337,750 x 1.0175 = $343,660
$343,660 x .0055 = $1,890.13
$1,890.13 / 12 = $157.51 / month
FHA loan 2026 requirements
✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 57%. (back end ratio)
✅The home must be the borrower's primary residence.
✅Borrower must have steady income and proof of employment.
Jeb Smith
DRE 01407449
Real Broker
#HousingMarket2025 #RealEstate #FHA
Most buyers pick between FHA and conventional by looking at the down payment, and that one habit can quietly cost them hundreds of dollars every single month. In this video I break down the real differences between the two loans, credit score, mortgage insurance, debt to income, and the simple "effective rate" trick I use to compare them in seconds. Then I run actual numbers on a $500,000 home and show you how the same house, with the same down payment, flips from a conventional win to an FHA win based on nothing but your credit score. By the end you'll know exactly which loan to ask your lender about, and which one is quietly the more expensive choice for your situation.
Start Here 👇
✅ Ready to become a homeowner? Start your stress-free journey today: jebsmith.net/start?video=K2lX8XC2Y6Q
Watch This Next 👇
⏩ FHA Income Requirements -youtu.be/aOfhgnHjiAo
⏩ FHA Loan Requirements - youtu.be/CApGLR5u6j0
⏩ How much can you afford with FHA? - youtu.be/3Vhqiwabva0
FHA Approved Condo List - entp.hud.gov/idapp/html/condlook.cfm
FHA County Loan Limits - entp.hud.gov/idapp/html/hicostlook.cfm
NEW 2025 FHA LOAN LIMITS -
Low Cost Areas:
One-unit: $551,288
Two-unit: $693,063
Three-unit: $837,720
Four-unit: $1,041,038
High Cost Areas:
One-unit: $1,249,125
Two-unit: $1,599,375
Three-unit: $1,933,200
Four-unit: $2,402,625
What is an fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.
➡ What is fha mortgage insurance? Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.
➡ What is the current upfront mortgage insurance premium for fha loans? The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.
➡ How do you calculate the monthly mortgage insurance premium for an fha loan? Purchase Price x Percent of Amount Financed x 1.0175 x .0055 / 12
Example Below using a $350,000 purchase price putting 3.5% down:
$350,000 x 96.5 = $337,750
$337,750 x 1.0175 = $343,660
$343,660 x .0055 = $1,890.13
$1,890.13 / 12 = $157.51 / month
FHA loan 2026 requirements
✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 57%. (back end ratio)
✅The home must be the borrower's primary residence.
✅Borrower must have steady income and proof of employment.
Jeb Smith
DRE 01407449
Real Broker
#HousingMarket2025 #RealEstate #FHA
