Derek McGowanLoan Officer / Owner, McGowan Mortgages · Branch Manager & Top-Ranked Mortgage Advisor

FHA 40 year Home Loan #homeloans #homebuyer #fhaloan #firsttimehomebuyer #bank

14 Apr 2023

Watch on YouTube

This is a YouTube video titled "FHA 40 year Home Loan #homeloans #homebuyer #fhaloan #firsttimehomebuyer #bank" created in April 2023. The content is a monologue explaining the misconception about the FHA's new 40-year home loan, clarifying that it is a loan modification for existing FHA loan holders rather than a new loan option for homebuyers. The speaker addresses common misunderstandings and provides context about the loan's purpose during high inflation periods.

You may have seen the headline about FHA's new 40 year home loan. I've even seen some articles that talk about hey home buyers great news. There's a new 40 year loan and keep your payment affordable. The problem is super misleading. This doesn't apply to purchases. A new home buyer can't take advantage of a 40 year loan. That's not what the whole thing was designed for. It's a loan modification. So kind of like during COVID times where people can take forbearance and skip a few payments, tack it to the end of their loan and get back on their feet. They've rolled this out in a high inflation environment to where if you're already in an FHA loan like a 30 year FHA loan and you're struggling on payments they can modify and push it out 40 years to drop your payments so you don't foreclose and lose your house. So it's a modification has nothing to do with homebuyers so realtors are really really sorry this isn't really any benefit to you or I.