Qualifying For FHA Loans In California
FHA Loans In California
FHA Loans in California are hands down the most popular mortgage loan programs available today. FHA Loans are not just for home buyers with bad credit. FHA Loans can benefit first time home buyers, home buyers with high debt to income ratios, home buyers with recent bankruptcy and/or foreclosure, home buyers with a prior deed in lieu of foreclosure, home buyers with a prior short sale, home buyers with unsatisfied collection accounts, home buyers with prior charge off accounts, home buyers with lower credit scores, home buyers who do not have income but have non-occupant co-borrowers, home buyers who need gift funds for a home purchase down payment, home buyers with gaps in employment, home buyers with short term on the job, and home buyers with other credit and/or income issues.
Benefits Of FHA Loans In California
FHA has been created back in 1934 and have been helping first time home buyers to be able to purchase their first home with very lenient mortgage lending guidelines and low down payment. FHA main function is to make homeownership affordable to hard working Americans. Here are some benefits FHA Loans has to offer to potential home buyers:
- Low down payment on home purchase where a person with a 580 FICO credit score can qualify for a home purchase mortgage FHA Loan with only a 3.5% down payment.
- Low closing costs and the home seller can give up to a 6% sellers concession to the home buyer to cover most or all of the home buyer’s closing costs.
- Easy credit qualification requirements where home buyers with credit scores of at least 580 FICO credit score needs only a 3.5% down payment and those under a 580 FICO credit score needs 10% down payment.
Buying Your First Home With A FHA Loan
First time home buyers can definitely benefit with a FHA Loan. FHA Loans are excellent for first time home buyers. Minimum down payment of 3.5%, you can add non-occupant co-borrowers to qualify, 100% gift funds are accepted for the down payment on your home purchase, open collection accounts are allowed, deferred student loans of at least 12 months will not count in calculating your debt to income ratios, and you do not need 24 months of continuous employment: gaps in employments are allowed. FHA Loans are only available for one to four unit owner occupant properties only. Second homes and investment homes are not allowed to have FHA Loans.
Fixer Upper FHA Loans In California
Home buyers who are looking to purchase a fixer upper home where they need the acquisition and construction loans, FHA offers the FHA 203k Loan program where you can purchase a home in need of rehab and FHA will provide you with the cost of the home plus the construction costs. FHA loan limits in California are much higher as long as the California home you purchase is located in a high cost area in California . FHA loan limits in California where the property is located in a high cost area in California for a single family home is $625,500. FHA loans limits in California for 2 to 4 unit properties can go as high as $1,000,000. If you currently own a home that is in need of repairs, you can refinance it with a FHA 203k Loan. Whether you have a FHA Loan, VA Loan, USDA Loan, or Conventional Loan, you can still do a FHA 203k Refinance Mortgage .
FHA Reverse Mortgages
FHA has a special refinance mortgage loan program called Reverse Mortgages where a homeowner who are at least 62 years of age or older and has equity in their homes can qualify for a cash out refinance mortgage loan. The homeowner needs to be an owner occupant of the home and needs equity in their home. The FHA Reverse Mortgage program allows you to convert a portion of the equity in your home into cash. Many homeowners in California have seen their properties appreciate in the past few years where they may have equity in their homes that they do not realize. California home prices have appreciated double digits in the past several years. If you are a homeowner in California and qualify for a reverse mortgage, check the value of your California property. You may not realize how much your home have appreciated in the past few years and may have more equity in your California home than you realize.
FHA Loans On Manufactured Housing And Mobile Homes
FHA has mortgage loan programs on manufactured home as well as mobile homes. The two FHA loan programs that FHA offers are manufactured homes who the owner owns the land and there is a foundation and the other FHA loan program available are homes that are considered mobile homes and that is located in mobile home parkes.
FHA Loans In California
The state of California has suffered from the 2008 Great Depression and California Real Estate values have plummeted more so than any other state in the nation. California home prices are probably the highest than those of any other states. Many counties in California are considered high cost areas and the maximum FHA loan limit on high cost areas in California is $625,500 for a single family home, condo, or townhome. California home values have increased significantly since 2011 and are continuing to increase. FHA loan limits in California where the home is located in a high cost California county are sometimes higher than conventional loan limits in California.