FHA Loan Credit Score Down to 600 OK In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
If you have a credit score below 640 and want to get a FHA home loan in California you may be able to get approved. There are FHA lenders now allowing credit scores below 640 on FHA loans in California under certain circumstances.
The FHA loan requirements to be approved for a score below 640 generally adhere to the following:
- No short sales, bankruptcies or foreclosures in the last three years
- No tax liens in the last three years
- No collections in the last 12 months
- No more than one 30 day late payment on revolving debts in the last 12 months
So as long as you do not have any of the above derogatory items on your credit, you may be OK to get a FHA loan in California with as low as a 600 credit score.
Please don’t hesitate to email us at homeloan8@gmail.com or call at 858-922-7899 if you have any questions about getting approved for a FHA, VA or conventional loan. We are experts at analyzing credit reports and getting you on the right track for home loan approval.
Below are some of the most up-to-date advantages of FHA loans in California:
- FHA loan limits in many California areas go up to $729,750. Areas such as Los Angeles, Orange County, San Jose, San Francisco, and San Diego
- FHA loan down payment is only 3.5%
- FHA loan requirements allow borrowers to receive a gift for the down payment from a relative
- FHA loan guidelines allow for a non-occupant co-borrower to help qualify
- FHA loan requirements allow for a 55.9% debt-to-income ratio vs. 45% on conventional loans with <20% down
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
FHA Loan 7 Year Fixed ARM in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
There is an excellent FHA loan mortgage option that very few are aware of. This is the 7 year fixed FHA ARM loan. On this FHA loan product, the interest rate is fixed for the first 7 years. The advantage of this FHA loan over the standard 30 year fixed FHA loan is that the interest rate can be much lower and thus the payments much lower. For borrowers who think they may only stay in a house for 7-9 years, this can be a very good option. The FHA borrower will save a substantial amount of interest over a 7 year period vs. a 30 year fixed FHA home loan.
The way this FHA loan product works is the interest rate is fixed for the first 7 years. On year 8 the loan will adjust based on the 1 year treasury bill index plus the margin (margin is usually between 2.25%-3%). The maximum the rate can rise on year 8 (and every year after) is capped at 2%. The maximum the rate could rise for the life of the loan is capped at 6%.
FHA lenders also offer 1,3,5 and 10 year fixed ARM’s. The 7 year fixed ARM is a particularly a nice balance because if offers a substantially better rate than the 30 year fixed FHA loan, but offers the safety of 7 years fixed rate vs. the 1,3, and 5 year fixed FHA ARMs that offer less years of a fixed rate. And the 10 year fixed FHA ARM is not enough of an interest rate improvement over the 30 year fixed to make it worthwhile.
So I hope this gives you some options to think about if you are pretty sure you will only be in a home 7 years or less. If you think you will keep a home for more than 8 years, I would still highly recommend the 30 year fixed FHA loan. If you would like to get approved for a FHA loan don’t hesitate to call us at 858-922-7899 or email us at homeloan8@gmail.com.
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
Fannie Homepath Mortgage Pays 3.5% For Closing Costs is a post from: FHA,VA and Conventional Home Loans in all 50 States
Fannie Mae offers special financing for homes that they have taken back in the foreclosure process and are re-selling on the market. This special financing is called Hompath. Fannie Mae just announced it will offer up to 3.5% in closing cost assistance on Fannie Mae owned Homepath properties. This is a very generous offer and can allow home buyers to buy a Fannie Mae Homepath property without having to pay any closing costs. This benefit is only for buyers who will occupy the property as their primary residence; this benefit does not apply to investors.
To qualify, the buyer’s initial offering on the Homepath property must be submitted on or after April 11 and the sale must close by June 30.
Remember, you can only get Fannie Homepath financing on homes that are owned by Fannie Mae. Your Realtor can help you find these properties as it will say the property is eligible for Homepath financing in the property listing.
Here are some of the benefits of Homepath financing in California:
- Only 5% down is required
- Homepath mortgage does NOT require mortgage insurance
- Fannie Homepath loans do not require appraisals
- Homepath mortgage is available on condos, townhomes and single family homes
- There are thousands of Fannie Homepath eligible properties throughout the state of CA
So don’t hesitate to give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about getting approved for a Homepath mortgage in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
FHA Loan Requirements and Business Expense Deductions in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
When you are preparing your income taxes this year and you plan to get a FHA loan to buy a home in California, you will want to pay very close attention to some of your income tax deductions. For this post I am specifically talking about unreimbursed business expenses. FHA loan guidelines require these expenses to be deducted from your income to qualify for a FHA loan, so you have to be very careful with these deductions if you plan to get a FHA loan to buy a home in California this year.
Salaried or hourly paid employees often have expenses for their jobs that their employers do not pay for. There is an area of your income tax returns where you can deduct these expenses called form 2106. When the FHA home loan lender underwrites your loan, they will deduct these expenses from your income to qualify. This can cause many borrowers to qualify for a lower purchase price then they thought or disqualify them for a FHA home loan all together. So pay close attention to these expenses and whether or not you want to deduct them if you plan to get a FHA loan in California this year.
Below are some of the most up-to-date benefits of FHA loans in California:
- FHA loan requirements only require three years to pass after a foreclosure to qualify for a FHA loan, conventional loans require seven years
- FHA loan limits in many counties in cities such as San Francisco, San Jose, Los Angeles, Orange County and San Diego allow FHA loans up to $729,750
- FHA loan credit score does not have to be perfect, give us a call and we can help you analyze your credit
- FHA loan interest rates are still near 60 year lows
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com