FHA loans are extremely viable for so many borrowers not only first-time homebuyers. Flexible guidelines, low down payment and low credit requirements make these loan types very popular.
Unlike Conventional loans, FHA loans are backed by the federal government. FHA provides an alternative for borrowers that need a little more flexibility to qualify. You'll get a noticeably lower rate even if you have a lower credit score.
Common FHA Requirements
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The home being refinanced or purchased must be the borrower's principal residence.
The loan amount will need to meet the limits set forth by FHA which are currently at $970,800 in Los Angeles county and $562,350 for a single-family home in San Bernardino and Riverside county. Limits may be higher in higher-priced regions such as Los Angeles, Orange and San Diego county.
The property being financed with FHA can be up to 4 units, but the borrower must live in one of the units. Rental income being generated from the remaining units can be used to qualifying based on certain requirements.
Do you have a low credit score? Not to worry, an FHA loan is very accepting of lower credit scores and blemished credit history. Short sales, bankruptcies and foreclosures are also allowed after 2 years.
Multi-unit properties up to 4 units are accepted as long as you live in one of the units. Furthermore, rental income from the remaining units can be used to qualify.
- Single family homes
- Multi-unit properties up to 4 units
- Manufactured homes on permanent foundation
FHA 203k Home Renovation Loans
Are you looking for a fixer upper, a nice home in a nice area but needs a little TLC? Then we have the loan for you. The 203k loan will allow you to purchase a home and finance the costs of the renovation all in one loan. Picture this... You buy the home, put the new kitchen cabinets in along with new countertops, new flooring and even upgrade the bathrooms all before you move in. Its' all possible with the 203k.
Energy Efficient Mortgage Program
Purchase a home and finance energy efficient upgrades all into one loan. With Solar energy become more popular this program will solve many problems people are having finding financing.
You may also get a higher tax deduction due to the type of interest you'll be paying. Mortgage interest is tax deductible where as other personal loans, credit cards, bank loans are not.
Here are some types of home improvements you can make
- Solar panels
- Window and doors
- HVAC system
- Wrapping the water heater
- Appliances
For full qualification requirements please contact one of our FHA specialist below.