Why Are California FHA Loans Unique?

California is unique in a sense because home prices are much higher than other parts of the Union.  A large portion of counties in California are classified as high cost areas by the United States Department of Housing and Urban Development, HUD.  Parts of California have home prices that are double or sometimes triple than comparable homes in other parts of the United States.  San Francisco home prices are probably one of the highest home values, if the the highest home values, in the country.  California FHA Loans are unique because most counties in California are in high cost areas.  FHA Loan Limits in most parts of the country is capped at $271,050.  HUD, the parent of the Federal Housing Administration, realizes that California housing prices are substantially higher than the rest of the United States and has labeled most California counties as high cost areas.  The maximium California FHA Loan Limit on a single family home in California is capped at $625,500.  Areas in Los Angeles, Irvine, San Francisco plus dozens of other counties, the California FHA Loan limits are at the maximum California FHA Loan limit cap of $625,500.  Other counties in California have higher than the $271,050 national FHA Loan Limit but lower than the maximum FHA Loan Limit of $625,500.

California FHA Loans With No Lender Overlays

Mortgage lender overlays are private mortgage lending guidelines on top of the federal minimum FHA guidelines. Gustan Cho and his associates specialize in California FHA Loans with no lender overlays.  For example, minimum FHA Lending Guidelines on FHA Loans is that the FHA loan borrower needs a 580 FICO credit score to qualify for a 3.5% down payment home purchase FHA Loan.  However, many California FHA Lenders will have mortgage lender overlays on credit scores where they will not accept any California FHA mortgage loan applicants who does not have a minimum of 640 FICO credit scores.  This California FHA Lender has FHA Overlays on credit scores where even though the minimum FHA credit score guidelines are 580 FICO, their mortgage lender overlay is 640 FICO when it comes to California FHA Loans.  Contact Gustan Cho Associates at 262-716-8151 if you are looking for a reputable experienced California FHA Lender with no FHA Lender Overlays .

California FHA Loans With No Lender Overlays With Debt To Income Ratios

Many FHA Lenders have mortgage lender overlays on debt to income ratios.  The maximum debt to income ratios allowed per federal FHA Lending Guidelines for 2015 is 46.9% front end debt to income ratios and maximum 56.9% back end debt to income ratios.  However, many California FHA Loan Lenders have mortgage lender overlays that cap the debt to income ratios to 45% DTI back end.  If you are having issues with California FHA Loans due to debt to income ratio overlays from your California FHA Mortgage Lender, contact Gustan Cho or one of his associates at Gustan Cho Associates 262-716-8151 or email gcho@gustancho.com.

 

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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