FHA loans are a great option for people who need easier qualification and credit requirements to buy a home. The FHA, or Federal Housing Administration, does not originate or guarantee FHA loans, however they have been insuring them since 1934. They insure FHA loans by charging or passing along a monthly mortgage insurance premium, as well as an upfront fee at the close of the loan. Although these fees and premiums add to the cost of the loan, typically rates on FHA loans are much lower, making the end financing very competitive and attractive. Ca Mortgage Pro is a leading provider of residential mortgages in Lafayette, Moraga and Orinda, as well as the whole state of California. For more information on FHA loan or how to qualify contact us today at 925-385-8621.
Advantages of FHA Loans
FHA loans do not require a large down payment, which is a big benefit for first time home buyers. FHA borrowers can get financing up to 96.5%, which means they can buy with as little as a 3.5% down payment. Additionally, FHA mortgage terms may allow a borrower to wrap the closing costs into the loan as well, which can typically cost around 2%-3% of the total mortgage. The two specific advantages make homeownership a possibility for those with limited assets and reserves.
FHA Loan Requirements
Another advantage of FHA loans is that one may qualify with a less than a perfect credit score. This is a huge plus for people who may have experienced financial problems in the past. Sometimes issues such as foreclosures and bankruptcies can impact ones credit long after the event has passed. A FHA loan is great for people who have these types of issues in the past, but have also worked hard to keep their credit in good standing since they were resolved.
- 3.5% Minimum Down Payment
- Credit score requirements
Qualify for a new FHA Loan Today
In short, FHA loans fill a very important need in the housing industry. CA Mortgage Pro offers a full selection of FHA loan offering for borrowers throughout the San Francisco bay area and California. We have helped many happy clients into homes using FHA financing over the last 25 plus years. Ca Mortgage Pro is a leading provider of residential mortgages in Lafayette, Moraga and Orinda, as well as the whole state of California. For more information on FHA loan or how to qualify contact us today at 925-385-8621.