FHA Purchase Loan

FHA Loans for Purchase:

 

FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:

 

  • Generally easier to qualify for than conventional loans.

  • Lower down payment requirements.

  • Cannot exceed statutory loan limits.

 

Minimum credit scores for FHA loans depend on the type of loan the borrower needs.

  • To get a mortgage with a down payment as low as 3.5 percent, the borrower needs a credit score of 580 or higher.

  • Those with credit scores between 500 and 579 must make down payments of at least 10 percent.

  • People with credit scores under 500 generally are ineligible for FHA loans.

  • The FHA will make exceptions under certain circumstances for applicants who have what it terms "nontraditional credit history or insufficient credit" if they meet requirements. Ask your FHA loan specialist if you qualify.

 

Down Payments can be:

 

  • From the FHA borrower’s own savings

  • A gift from a family member

  • Grants from a state or local government down-payment assistance program.

 

The FHA allows home sellers, builders and lenders to pay some of the closing costs, such as the title expenses, credit report, or appraisal,

 

Borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA).

  • Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan.

  • Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it's important to shop around.

 

Two mortgage insurance premiums are required on all FHA loans:

  • The upfront premium is 1.75 percent of the loan amount — $1,750 for a $100,000 loan. This premium is paid when the borrower gets the loan. It can also be financed as part of the loan amount.

  • The second premium is paid monthly. It varies based on the length of the loan, the amount borrowed and the initial LTV ratio (loan-to-value)

 

Thinking of Purchasing a Home?

You can start the process by visiting our Purchase Assistant or by testing out different financial scenarios on one of our online calculators.

 

Considering a Refinance?

There are many ways to go when you refinance your home. Start by narrowing down your options based on your individual needs on our Refinance Advisor page.

 

Ready to start the home mortgage process today?

Complete a  secure online loan application or call me for a friendly chat and free mortgage consultation today at 707-763-6290

 

Questions about your California mortgage loan?

Or your California mortgage rates? We always strive to bring you the lowest mortgage rates in California. We always strive to bring you the lowest mortgage rates in California. Feel free to call us at (707) 763-6290, Click here to submit a question through our website or email to js@emortgages.com