California FHA High-Balance Loans

California FHA High-Balance Loans In High-Cost Counties

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss California FHA high-balance loans in high-cost counties. It is no secret to residents of California that the cost of living is high. California FHA High-Balance Loans makes California home buyers purchase California homes in all parts of the state with a 3.5% down payment.

California Housing Prices Surging Due To Buildable Land Shortage and Environmental Regulations

HUD, the parent of FHA, is more than well aware that a large percentage of the state has home values that are double the average home costs of most parts of the United States. Some ask why this is. Maybe it’s the weather, maybe it’s the ocean, maybe it’s the economy. Whatever the cost may be, HUD realizes the prices of homes in a large portion of California are very high. This is why there are “high balance” counties throughout the state.

The Strong California Housing Market Forecasted To Continue

The average cost of a home in California in 2021 was $680,000. With an average listing of $725,000, as you can see statistics show many sellers are getting over the asking price. As a renter, the median rental cost was $2,450 a month. Many parts of California such as San Francisco have some of the highest-priced rentals in the nation. This is common knowledge, and really drives the prices of homes through the roof. California is one of the most diverse states in our great nation. Located throughout the state are some of the richest and poorest counties. In this article, we will discuss and cover California FHA High-Balance Loans For High-Cost Areas.

HUD Increases 2022 FHA Loan Limits On California FHA High-Balance Loans

We will go over the list of the top ten biggest cities in California, the county they are located in, the FHA loan limit for a single-family home in that county:

  • Los Angeles – Los Angeles County – $ 970,800
  • San Diego – San Diego County – $ 879,750
  • San Jose – Santa Clara County -$ 970,800
  • San Francisco – San Francisco County – $ 970,800
  • Fresno – Fresno County – $ 647,200
  • Sacramento – Sacramento County – $ 675,050
  • Long Beach – Los Angeles County – $ 970,800
  • Oakland – Alameda County – $ 970,800
  • Bakersfield – Kern County – $ 647,200
  • Anaheim – Orange County – $ 970,800

To check your county if not listed above please see the  HUD / FHA loan limits for 2022.

How To Qualify For FHA High-Balance Loans In California

How To Qualify For FHA High-Balance Loans In California

California FHA High-Balance Loans are often referred to as FHA Jumbo Loans. This is because it is substantially higher than the standard national median home average FHA  loan limits.  Gustan Cho Associates is a mortgage broker licensed in 48 states with a heavy presence in California. The team at Gustan Cho Associates has a national reputation for helping homebuyers with less than perfect credit qualify for FHA loans. Gustan Cho Associates are also experts on California FHA High-Balance Loans. Homebuyers in California can qualify for California FHA high-balance loans with under 600 credit scores.

Mortgage Rates On FHA High-Balance Loans With Under 600 FICO

One thing high-end homebuyers need to realize is that with California FHA high-balance loans, there are substantial loan level pricing adjustments (LLPA). Loan level pricing adjustments are pricing hits for lower score borrowers on FHA jumbo mortgages. We will discuss more mortgage rates on California FHA high-balance loans in the following paragraphs.

FHA Lenders With Overlays on California FHA High-Balance Loans

Most lenders have additional higher lending requirements that are above and beyond the minimum HUD guidelines when it comes to California FHA High-Balance Loans. The higher lending requirements are called mortgage overlays. Gustan Cho Associates has always had a reputation for its no-lender overlays business model. We do not have any lender overlays on California FHA high-balance loans or VA high-balance loans. We just go off HUD guidelines on California FHA high-balance loans with zero lender overlays.

HUD Guidelines On California FHA High-Balance Loans

Here are general agency HUD guidelines on California FHA high-balance loans

  • Minimum credit scores of 500
  • Maximum debt to income ratios of 46.9% front end and 56.9% back end
  • Outstanding collections and charged-off accounts do not have to be paid off to qualify for California FHA High-Balance Loans
  • Two year waiting period after Chapter 7 Bankruptcy
  • Three year waiting period after housing event (foreclosure, deed in lieu of foreclosure, short sale) to qualify for High-Balance Loans
  • Buyers can qualify for California High-Balance Loans one year into a Chapter 13 Bankruptcy repayment plan with Trustee Approval

There is no waiting period after the Chapter 13 Bankruptcy discharged date to qualify for High-Balance Loans.

Qualifying For California FHA High-Balance Loans With No Lender Overlays

FHA loans have great low-down payment qualifications and allow many Americans to complete their dream of homeownership. We are FHA mortgage Experts at Gustan Cho Associates and would love to help you get pre-qualified. Unlike other lenders, The team at Gustan Cho Associates specializes in government and conventional loans with zero overlays on California FHA high-balance loans. Whatever the HUD Guidelines are, that is what we go by. No added requirements and/or mortgage lender overlays. The approve/eligible per automated underwriting system (AUS) is what we go by.

HUD Agency Guidelines on California FHA High-Balance Jumbo Loans Versus Standard FHA Loans 

As long as our mortgage borrowers can meet all the conditions on the Automated Underwriting System Approval, they can rest assured that they will not just close their California FHA High-Balance Loans but will close their home loans on time. All of our pre-approvals are fully underwritten and signed off by our mortgage underwriters. Our pre-approvals are not signed off by loan officers. Loan Officers should not sign off on pre-approval letters. Mortgage underwriters sign off on pre-approval letters after they fully underwrite a file.  Please contact us at Gustan Cho Associates at 800-900-8569 or text for a faster response and for more information on getting approved for California FHA High-Balance Loans.

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