FHA FAQ And Helpful Information
Here you will find FAQ about FHA loans and helpful information about FHA loans for determining the right type of loan for you!
What is an FHA loan?
An FHA loan is a program that insures home loans. The FHA (Federal Housing Administration) doesn’t actually fund your home loan in any way. President Roosevelt’s administration started the FHA to enable lenders to provide low down payment (current 3.5%) 30 year loans by insuring lenders from losses associated with homeowner default.
Should I acquire an FHA loan?
The answer is yes. If you want to buy a house with a small down payment, or are a first-time home buyer, or have a low credit score, or do not have traditional credit such as credit cards and car loans then an FHA loan is for you. Non-traditional credit that works for FHA include payments that you make that are not reflected on your credit report including utility bills, rent, etc. Also, you might think that you don’t earn enough money and might not have enough money for closing costs. We can structure a loan that enables people to buy a home with relatively poor or little credit, low down payment, and no post-closing cash reserves. An FHA loan may be a great solution for you even if you have good credit and a down payment, the increased options of FHA home loans make them attractive choices for your mortgage.
Use an FHA loan to buy a home with a very small down payment
You only need a 3.5% down payment and the Seller can provide you with a credit for up to 6% of your closing costs. You still need 3.5% of your own money in the transaction, but that’s all, and it can be a gift from a family member or a long time family friend—and the long time ties must be documented.
Lower credit scores are not a problem
FHA loans allows non traditional and lower credit scores on a case by case basis. It is also may be possible for people with no established credit to receive a loan with this program. Home ownership is within your reach even though you think that you will not qualify. A simple phone call to our office can get you valuable information to get you started. Or apply on-line and follow up with a phone call.
STOP RENTING: FHA is a great start for first time home buyers
Our FHA loan programs can get you a great loan to buy your first home. Don’t think that you need a traditional 20% down payment, closing costs, and post closing reserves. We can help you structure a loan that will enable you to obtain pre-approval to show to your Seller and/or Realtor that you qualify for a loan, even with lower income and low credit, with as little as 3.5% of your own money as down payment and closing costs. This program works for you, so call us today and get the benefits (interest write-off’s, potential price appreciation, and pride of ownership). 800-365-8787 or 818-704-5626.
FHA loans are not only for low income borrowers
I was recently on vacation and spoke to several young people on the beach who were earning very good money, but had small savings relative to the home they wanted. They lived in Los Angeles and were shocked when I told them that they could buy a $636150 home with as little as $26,467 as a down payment! They can afford the payment, but not a traditional 10% to 20% down payment. FHA programs have no maximum income ceilings. FHA does not discriminate against high or low income borrowers.
FHA loans finances 2 to 4 unit properties
Do you want to live in your home and receive rental income? The same expanded qualifications exist for 2 to 4 unit properties that exist with single family residences so long as one of the units is the buyer/owners primary residence. Imagine, buying a 4 plex up to $1.3million with only 3.5% down payment;
FHA loan maximums in California for 2017 are:
1 unit maximum: $424,100 nationwide, up to $636,150; California county specific
2 unit maximum: $543,000 nationwide, up to $814,500; Californiacounty specific
3 unit maximum: $656,350 nationwide, up to $984,525; California county specific
4 unit maximum: $815,650 nationwide, up to $1,223,475; California county specific
Get Approved for an FHA Loan Today!
The Loan Superstore is a leading provider of FHA Loans. For more information on FHA Loans and how to qualify fill out the Quick Quote on the left of the page!