California FHA Loans Available

Looking for low down payment financing on a home? We're able to offer FHA loans to qualified home buyers and refinancing with FHA loans!

What can a FHA loan do for you?

* FHA provides Low Down payment loans — just 3.5% down, and sellers can pay closing costs.

* FHA provides low interest rates for affordable monthly payments.

* FHA loans allow property sellers to pay closing costs — including "non-recurring" costs.

* A FHA loan can finance 2 – 4 unit properties and manufactured homes on permanent foundations.

* FHA loans allow less-than-perfect credit in cases where there is a valid explanation for the low scores. We can close FHA loans even with credit scores as low as 520.

* First-Time home buyers qualify for FHA loans.

* FHA loans can be used to refinance property you own, including cash-out. "FHA Streamline" refinancing allows you to lower the interest rate on a current FHA loan with little or no cost when market rates are favorably lower.

* Low Down Required. Just 3.5% for FHA purchase loans.

* Low Interest Rate Financing. FHA-insured loans carry rates on par with non-FHA loans. Low interest rates mean you qualify for more home!

* Low Closing Costs. The seller of a property can pay up to 6.00% of the loan amount to cover your loan's closing costs.

* Different property types qualify for FHA-insured loans. You can purchase a single family home, condo, townhouse, or manufactured home (on land you own, permanently attached) with a FHA-insured loan. You can also buy or refinance a duplex (2-unit), triplex (3-unit), or 4-unit property as long as you owner-occupy one of the units and the loan is within standard FHA loan limits for your county.

* Flexible credit underwriting. You don't have to have "perfect" credit to qualify for a FHA loan. While your credit scores are part of qualifying for a FHA loan, those with reasonable explanations for any derogatory credit can often be approved for a loan. These explanations include verifiable occurrences such as a job loss or medical issues.

* First Time Home Buyers Qualify For FHA. FHA-insured loans are ideal for first-time home buyers, since the down payment requirement and closing costs are lower than conventional loans from Fannie Mae or Freddie Mac.

* You can refinance your home loan with a FHA loan, including cash-out. You can refinance your home with a FHA loan and lower your payment, fix an adjustable loan you may have, or take cash-out. Loan-to-value restrictions apply to loans refinanced with FHA, so call for a consultation.

* FHA loan limits are higher than usual in 2009 in many "high cost" counties across the U.S. For a limited time, FHA allows for expanded jumbo loan limits in high cost counties. Jumbo FHA home loans offer the same low down payment as conventional loan amounts and the security of a fixed rate loan. These increased loan limits are for a limited time.

* "FHA Secure" Loan Program can help you if you've fallen behind on your adjustable loan payments. There are very specific guidelines and qualifications for eligibility, but FHA can help you if you're in an adjustable loan with a "reset" feature from June of 2005 through December of 2009. Call for a consultation.

* FHA 203k Loan Program For Rehab Purchase Transaction. A FHA 203k loan is a specialized loan program which can be used to purchase a fixer-upper home for owner-occupants (no investors). The program provides for up to 110% of the after-repaired value of the property. This is a unique program with many restrictions, so call us for a consultation. We offer other rehab loans for California properties in addition to FHA 203k, including rehab loans from banking sources and hard money lenders. Call.

OTHER IMPORTANT FHA LOAN INFORMATION

* FHA loans require documented income. There are no "stated income", "bank statement", or "no doc" FHA loans.

* FHA loans require a 2-year verifiable employment history. Self-employed borrowers may qualify for FHA loans, but must prove self-employment for 2 consecutive years or more and document income.

* Not all applicants / property qualify for FHA loans. FHA has very established underwriting criteria and is not intended as a subprime loan program for non-creditworthy applicants. In some cases, those who do not qualify for FHA may qualify for another loan program, including programs from Fannie Mae and Freddie Mac.

* FHA loans require mortgage insurance, both a prepaid premium (known as "up front MIP") and a monthly payment based on the loan amount. This insurance is separate from your property taxes and hazard insurance and must be taken into account when considering the entire monthly credit obligation involved with a FHA loan.

* Many brokers claim to know FHA loans but really don't, or "pass through" FHA loans through other HUD-approved lending institutions. We are a HUD-approved FHA broker for FHA loans in CA, and have a staff affiliation with a federally chartered credit union for FHA loans in all states across the U.S. and have nearly 20 years experience in the mortgage industry. When it comes to FHA lending you should only work with an experienced FHA lender. Call us today or inquire online.

Posted on Monday, May 12th, 2008 at 10:30 pm in Mortgage Loan Insights. Bookmark this page, or subscribe through the RSS 2.0 feed. Both comments and pings are currently closed.