Real estate.

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 only

Instructions

Write 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 Resources

Acronyms and Explanations

Front end ratio = Housing costs. PITI + HOA + any other costs, example: Mello-Roos

• PITI = Principal, Interest, Taxes, & Insurance
• HOA = 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 REPORT

FHA 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.

TEMPLATE

<your name>

<today’s date>

<class>

<textbook>

<module / chapter #>

Recommended Loan Program

<Write one overview paragraph recommending either the conventional or FHA loan program for this buyer. Compare and contrast the loan types below by answering the following questions with complete sentences. Which type of loan do you recommend for your subject borrowers FHA or conventional? Why do you recommend this loan type? What are the pros and cons? Paragraph must be 5 sentences. Cite the textbook page number in parenthesis.>

FHA 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 Financing

<Write one paragraph describing the conventional loan financing methods from Chapter 9 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.>

EXAMPLE