Top Myths About FHA Loans in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Since FHA loans were not commonly used in California for 10 years prior to 2008, there are still a lot of erroneous myths out there about FHA loan requirements. Here are some of the top myths about FHA loans in California:
- Myth #1 FHA is for first time buyers. FHA is for ANYONE. Although commonly used by first time buyers because of the low 3.5% FHA loan down payment.
- Myth #2 FHA loans are difficult for sellers because of termite repairs and other repairs. FHA is no different than conventional loans in that if a termite report is not requested in the purchase contract, the FHA lender will not need a termite clearance. There are generally few if any repairs the FHA appraiser will ask to be done.
- Myth #3 FHA loan limits in California are less than conventional loans. FHA loan limits in California go up to $729,750 just as high as conventional in many counties of California including San Francisco, San Jose, Los Angeles, Orange County (and San Diego is very close to this limit).
- Myth #4 The 3.5% down has to come from the borrower. FHA loans in California allow the 3.5% down to be a gift from a relative.
- Myth #5 FHA loan interest rate is higher than conventional. This is not true; in fact FHA loan interest rates can be many times slightly LOWER than conventional rates.
- Myth #6 FHA loans in California take longer to close than conventional loans. Again incorrect, there is NO difference in the time it takes to close a FHA loan vs conventional
Well I hope this busts some common myths about FHA loans in California. Give us and email (homeloan8@gmail.com) or call at 858-922-7899 if you would like to be approved for a FHA loan in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899
FHA Loans Allow Non-Occupant Co-borrowers In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
A very nice aspect of FHA loan guidelines for California borrowers is they allow for a co-borrower who does not have to live in the property. So if you are having difficulty being able to qualify for a FHA loan on your own, you may want to see if you can find a relative with good income and decent credit that would be willing to be a co-borrower on your FHA loan to assist you in getting FHA loan approval. A FHA lender in California will take all the borrowers income, including the non-occupant co-borrower and both borrowers’ debt obligations and come up with a debt-to-income ratio. So as mentioned above, it is usually best to find a non-occupant co-borrower for your FHA loan that has a decent credit score, strong income and not a lot of debt.
FHA loan guidelines also allow that non-occupant co-borrower to get their own FHA loan if they want to buy their own primary residence. So being a non-occupant co-borrower on another FHA buyers loan, will not prevent that non-occupant co-borrower from getting their own FHA loan.
I hope this helps you think of ways to be creative and purchase your own home in California using an FHA loan. Remember, FHA loan limits in many California counties and cities such as Los Angeles, Orange County, and San Jose go up to $729,750 with zero down. And cities like San Diego are not far behind with very close to this loan limit.
Send me an email at homeloan8@gmail.com or call 858-922-7899 if you would like to be approved for a FHA loan in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899
FHA Loan Guidelines In California Require Inclusion of Non-Borrowing Spouse Debt Obligations is a post from: FHA,VA and Conventional Home Loans in all 50 States
California is a community property state, so FHA loan guidelines require both spouses debt obligations to be included in the debt-to-income ratio calculations for FHA loan approval. So even if only one spouse is going on the FHA loan in California, both spouses credit reports must be pulled and all the debt obligations (car loans, mortgages, student loans, credit cards) of the non-borrowing spouse must be counted for approval. However, the credit quality of the non-borrowing spouse is not considered in teh decision for FHA loan approval. So if the non-borrowing spouse has a really low credit score, that is OK, it will not effect FHA loan approval, just the debts have to be counted.
So in some cases if you spouse has a really low FHA loan credit score, you may want to leave them off the loan in order for you to get a better FHA loan interest rate (or even qualify for the FHA at all). Of course you would still have to qualify with the income of only the one spouse that is on the FHA loan.
If you have any questions about getting approved for a FHA, conventional or VA loan in California, don’t hesitate to email me at homeloan8@gmail.com or call at 858-922-7899.
And here are some up-to-date advantages of FHA home loans in California:
- FHA loan rates are still near 60 year lows
- FHA loan limits in many California counties and cities such as San Francisco, Alameda, San Jose, Los Angeles, Orange County go up to $729,750 with only 3.5% down. FHA loan limits in San Diego County are very close to this.
- FHA loan down payment is only 3.5% and can be a gift from a relative
Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899
Qualifying for FHA Loan In California When Self-Employed is a post from: FHA,VA and Conventional Home Loans in all 50 States
Since early 2008 when the lenders all eliminated all of the stated income loan programs, it has been a challenge for borrowers who are self-employed or independent contractors to obtain home financing, whether FHA, VA or conventional loans. Below are some FHA loan requirements to think about if you are self-employed, an independent contractor, or paid on commission only.
- FHA loan mortgage lenders will ask for your 2008 and 2009 federal tax returns and they will average the NET business income (not the GROSS) to calculate your income for qualification
- FHA lenders will add back depreciation to your income
- If your income has declined from your 2008 tax returns to your 2009 tax returns, FHA loan mortgage lenders will take only the 2008 income and not average
- If your income has gone up from 2008 to 2009, they will take the average
- If you are commission only, FHA loan approval requires a 2 yr history and will take the average
- If you will need your 2010 income to qualify, make sure you file your taxes as soon as possible in 2010. FHA loan guidelines require the lender to pull a transcript of that years returns and it can take the IRS 2-4 weeks to process your return
- If you are planning to qualify for a FHA loan, you may want to plan to show more income and take less write-offs
I hope this helps your understanding of qualifying for a FHA loan if you are self-employed or paid 1099. Don’t hesitate to email me at homeloan8@gmail.com or call at 858-922-7899 if you would like to get approved for a FHA loan in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899