FHA Loans

FHA Loans: Low Down Payment, Flexible Credit Requirements

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They are one of the most flexible loan programs available, with lower credit score requirements and smaller down payments than conventional loans. FHA loans have helped thousands of buyers achieve homeownership who might not otherwise qualify.

FHA Loan Highlights

• Down payments as low as 3.5% with a 580 or higher credit score
• 10% down accepted with credit scores as low as 500
• Loan amounts up to $1,249,125 in Los Angeles and Orange County
• Seller can contribute up to 6% toward closing costs
• Gift funds allowed for down payment and closing costs
• 2-year waiting period after bankruptcy (Chapter 7)
• 3-year waiting period after foreclosure
• Non-occupant co-borrowers allowed to help you qualify

FHA Mortgage Insurance

FHA loans require two types of mortgage insurance. The first is an upfront MIP of 1.75% of the loan amount, which is typically financed into the loan. The second is an annual MIP paid monthly, ranging from 0.55% to 1.05% depending on loan amount and term. Unlike PMI on conventional loans, FHA MIP generally stays for the life of the loan. This makes it worth considering a refinance into a conventional loan once you have built enough equity to qualify.

FHA Streamline Refinance

If you already have an FHA loan, you may qualify for an FHA Streamline Refinance. This program has reduced documentation requirements and no appraisal needed in most cases. It is one of the fastest ways to lower your mortgage payment when interest rates drop.

Apply for an FHA Loan Today

Rob Tennyson is an experienced FHA lender serving buyers nationwide. Whether you are a first-time buyer or purchasing again after a tough credit event, Rob can walk you through the FHA qualification process from start to finish. Apply by clicking here or call 714-400-2317.