FHA Loans

California FHA Loans

FHA does not provide loans; rather FHA loans are government insured loans made available to assist homeowners and home buyers in obtaining financing.  FHA loans have more flexible credit guidelines compared to conventional home financing.  In fact, FHA loans may allow homeowners to purchase a home with little or no money down.  Standard FHA guidelines will allow for a 3.5% down payment and a 96.5% loan to value as opposed to conventional financing requiring 5-20% down payment.

FHA loansWhen applying for a California FHA loan, it’s good to know that minimum credit scores to qualify for an FHA loan are typically 620; but some lenders with manual underwriting will allow for credit scores 580 and in some extenuating circumstances below 580. To be certain, you may complete the short form at the side  and a loan officer experienced in California FHA loans will contact you at a time convenient to you.

If qualified, borrowers in California may have a 3% silent second loan to further reduce the required down payment to a minimal .5% (one half percent).  Home buyers are encouraged to educate themselves on the CalHFA program and CHDAP down payment assistance program.

If you need any assistance or if you have any questions regarding California FHA, please complete the information on the online form.  There is never a cost to speak to a representative and it’s always a good idea to have someone explain your loan options prior to submitting a formal application.

You do not have to be a first time home buyer to obtain FHA financing and you may be able to obtain a loan with a non-occupying co-borrower if you need additional income to qualify.  There are maximum loan amount restrictions by county, so you will need to familiarize yourself with the maximum loan amount for your county to make sure it will be sufficient.