Buying a new home with a low down payment and affordable rates is possible even if you do not have perfect credit. Consider applying for an FHA mortgage.
What are FHA Mortgages?
FHA mortgages are home loans that are guaranteed by the Federal Housing Administration. This differentiates them from conventional loans, which have no government backing.
The FHA’s backing is valuable for borrowers because it makes their loans less risky for lenders. The result is that lenders can relax their requirements and still offer excellent benefits.
Benefits of FHA Loans in California
- Buy a home with a down payment as low as 3.5%.*
- Credit qualification requirements are looser than they would be without government backing.
- The seller may give a credit at closing to help cover some or all of the closing costs.
- FHA loans are available for home purchase, renovation, refinance and more.
- Pick a fixed rate or adjustable rate.
Who Qualifies for a CA FHA Mortgage?
With the benefits listed above, FHA mortgages are often aimed at the market of first-time homebuyers. But you do not have to be a first-time homebuyer to qualify.
- You must meet the credit score requirements for the down payment amount you want.
- You must document two years of steady employment.
- You need to have a clear Credit Alert Verification Reporting System (CAIVRS) record.
- If you have gone through a foreclosure, you must pass through a three-year waiting period before you can qualify for an FHA loan.
- If you have filed for bankruptcy, you must wait 12-24 months to apply for an FHA loan.
- FHA mortgages are only available for buying primary residences, not second homes or vacation homes.
You can purchase a single-family home, HUD-approved condo, or 2-4 unit multifamily home using an FHA mortgage.
Apply for an FHA Mortgage in Rancho Cordova or Beyond
FHA mortgages are an excellent choice for first-time and returning homebuyers who are looking for flexibility and affordability.
If you want to apply for an FHA loan, please contact us today at (916) 669-1682 to schedule your consultation. We work with customers in Rancho Cordova, Gold River and throughout Sacramento, El Dorado, Placer, San Joaquin and Stanislaus Counties and throughout the state of California and Idaho.
*Please visit our Disclosures page for more details for all loan types.”