FHA Loans

What is a FHA Loan?

FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA).  Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.

A FHA Loan is provided by the Federal Housing Administration and has a lower down payment. An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.

Benefits of FHA Loans

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

FHA Loan Eligibility

The FHA has determined different price ceilings when it comes to the purchase price of the home. These caps vary according to location, and are regularly updated. Even though the FHA sets lower credit score limits for borrowers, there is a requirement that an applicant with a score lower than 580 make a down payment of 10 percent or higher. Income and employment is an eligibility factor in regards to FHA loans. Lenders require that a borrower can show proof of steady employment with “effective income.” The home being purchased or refinanced must be the borrower’s primary residence; the FHA requires that the property be an owner-occupied dwelling.

FHA Loan Limits

Different counties have different limits on how much you can borrow for an FHA Loan. For your county FHA loan Limits please contact John Today! 818-482-4747

Los Angeles County
Single           Duplex         Tri-plex         Four-plex
$679,650    $870,225     $1,051,875      $1,307,175

San Bernardino County
Single         Duplex        Tri-plex            Four-plex
$405,950 $519,700    $628,200             $780,650

Santa Clara County
Single        Duplex        Tri-plex            Four-plex
$679,650  $870,225   $1,051,875         $1,307,175

 

Get Pre-Approved for a FHA Loan

If you are a first time home buyer, or simply seeking a lower down payment program or refinance in Glendale, Burbank, La Canada, Pasadena, Los Angeles, San Fernando Valley, and surrounding areas in California, contact John Piliposyan Provident Lending Group at (818) 482-4747 for more information, or simply fill out the form on this page.