FHA Loans in Roseville and Sacramento
Homebuyers looking for a mortgage product that features flexible qualification requirements and affordable rates will want to consider applying for an FHA mortgage in California.
What is an FHA Mortgage?
An FHA mortgage is a type of loan that the Federal Housing Administration (FHA) guarantees.
The guarantee from the FHA lowers risk for lenders, allowing applicants to qualify more easily for competitive rates and low down payment requirements.
Benefits of FHA Mortgages in California
FHA loans include the following benefits:
- Down payments as low as 3.5% are available to qualifying applicants.
- Eligibility for this type of loan does not require a perfect credit score.
- Competitive rates exist even for eligible applicants with lower credit scores.
- Interest rates both fixed and adjustable are available.
- You can buy a home with an FHA mortgage, build one, or upgrade or repair one. FHA mortgages are available as well for refinancing and consolidation.
Are You Eligible for a California FHA Loan?
Following are the basic eligibility requirements for FHA mortgages:
- You can qualify for a 3.5% down payment if your credit score is 580 or higher. Lower credit scores require more down payment.
- Your debt-to-income ratio can go up to 55%.
- A clear interactive voice response system (CAIVRS) report is a requirement.
- You must be able to prove that over the past two years, you have been steadily employed.
- The property you are purchasing must be a primary residence only.
There are some common misconceptions about who qualifies for FHA mortgages.
The most common myth is that you need to be purchasing your first home. But that is not true. First time and repeat homebuyers alike can apply successfully for FHA loans.
Another common misconception is that you cannot buy a home using this type of loan with a bankruptcy or foreclosure. Once you pass the current required waiting periods, you can apply for an FHA loan.
Apply Now for a Flexible, Affordable FHA Mortgage
Are you eligible for an FHA mortgage with a low down payment? Find out now by giving Cindy Steelman a call at (916) 847-7263 to schedule your consultation.
Cindy works with customers in Roseville, Sacramento, Placer, and El Dorado counties, and throughout California.