ACTIVITY: Final Paper Part 6 (FHA & Conventional Loans)This is the last section you will write for the final paper, other than the introduction and conclusion (in Module 14). This week’s focus is a comparison between FHA and conventional loans, as we learned in Chapters 9 and 11. This activity will examine both conventional and FHA loan financing through the lens of your buyers.Please. no plagiarism. no AI. original work onlyInstructionsWrite three paragraphs about your subject buyers (as listed in your profile data) that you have been writing about for Module Activities 4, 6, 8, and 10. The first paragraph will be an overview, the second paragraph will examine FHA loans, and the third paragraph will discuss conventional loans. The two loan types must be applied to your subject buyers so please connect the textbook material with your BORROWERS’ specific situation.Please. no plagiarism. no AI. original work only Module 12 Supplemental ResourcesAcronyms and ExplanationsFront end ratio = Housing costs. PITI + HOA + any other costs, example: Mello-RoosPITI = Principal, Interest, Taxes, & InsuranceHOA = Home Owners Association (example: monthly dues for condo or PUD)Mello-Roos = Assessment for public improvements added to property tax bill Back end ratio = housing costs (above) + ALL OTHER DEBTS THAT APPEAR ON YOUR CREDIT REPORTFHA Debt Ratios = http://www.fhahandbook.com/debt-ratios.phpLinks to an external site.Mortgage loan differences.How FHA and VA Loans Stack Up: https://www.military.com/money/home-ownership/how-fha-and-va-loans-stack-up.htmlLinks to an external site.USDA Loans (select from Single Family Housing GUARANTEED or DIRECT): https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.doLinks to an external site.Jumbo vs. Conventional Loans (Conforming & Non-Conforming): https://www.investopedia.com/articles/personal-finance/061815/jumbo-vs-conventional-mortgages-how-they-differ.aspLinks to an external site.Loan Limits by Area: https://www.fanniemae.com/singlefamily/loan-limits#Links to an external site.TEMPLATERecommended Loan ProgramFHA Government Loan< Write one paragraph explaining the FHA government loan program approaches from Chapter 11 in the textbook. Discuss the specifics of this loan program and whether it would be a good fit for your subject borrowers. This paragraph must be 5 sentences. Cite the textbook page.>Conventional FinancingEXAMPLEIma StudentMay 12, 2021BRE-126 Real Estate Finance by Huber, WaltRecommended Loan ProgramFor Mickey Mouse and Minnie Mouse, I recommend the FHA loan program for their new home purchase financing. FHA and conventional loans are similar because …. In contrast, FHA and conventional mortgages are different in the following aspect: . The advantages of the FHA loan for the Mouse borrowers are… The disadvantages , however, are outweighed by the advantages. Therefore, the FHA mortgage will best suit their situation (p. 123).FHA Government LoanThe FHA mortgage loan is . The loans are insured by the federal government, which minimizes the risk for lenders. This loan program offers borrowers…. (p. 456). It has the following qualifications for borrowers… FHA would be a good fit for Mickey and Minnie Mouse because .Conventional FinancingConventional mortgages, on the other hand, require . Borrowers applying for this program need to qualify by (p. 789). The benefits of a conventional loan include . However, this loan also requires the borrowers to . Although the conventional mortgage is a good option, it is not the best choice for the Mouse borrowers and their situation.
Victor Valley College
BRE – 126 Real Estate Finance
2/4/2021
2
The more that you read, the
more things you will know,
the more that you learn,
the more places you’ll go.
BRE – 126 Real Estate Finance
2/4/2021
3
? Reflection Summary
due by beginning
of EACH class
BRE – 142 Real Estate Marketing
2/4/2021