FHA Loan Requirements For Excluding Certain Debts To Qualify is a post from: FHA,VA and Conventional Home Loans in all 50 States
Many future home buyers out there have car payments and credit cards that show up on their credit report that they co-signed for, but some other party makes these payments. FHA loan requirements allow a borrower to exclude the payments on any co-signed debt as long as the FHA borrower can document that this other party has been making the payments for the last 12 months. Additionally, that 3rd party has to be a co-borrower on the debt in question. So if you have a couple of car loans or credit cards that are preventing your from qualifying for a FHA home loan, and someone else is making those payments, there is a chance you can exclude those payments.
Another similar concept in getting your FHA debt-to-income ratios where they need to be, is paying off debt to qualify. You can pay off auto loans or credit cards to qualify for an FHA loan if you need to. But if you do this and the debt is still reporting to your credit, you will need to provide the zero balance statements and source where the money came to pay off the debt to the FHA home loan lender.
So I hope this helps understand different ways you can pay off debt or exclude debt to qualify for a FHA home loan in California. Don’t hesitate to email me at homeloan8@gmail.com or call at 858-922-7899 if you have an questions or would like to be approved for a FHA loan in California.
Below are some highlights of FHA home loans in California:
- FHA loan limits in California are $625,000 in San Francisco, San Jose, Los Angeles, Orange County, Anaheim, Santa Ana. FHA loan limits in San Diego are $546,250. FHA loan limits in Riverside and San Bernardino are $355,350. Sacramento FHA loan limits are $474,950. Fresno FHA loan limits are $281,750.
- FHA loan down payment of 3.5% can be a gift from a relative
- FHA loan interest rates are at ALL TIME lows
Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
Related posts:
VA loan credit scores do not have to be perfect to successfully qualify for a VA home loan in California. But there are certain VA loan requirements for credit scores that has to be met. As a general rule, you will need your VA loan credit score to be over 620 to be able to get a VA home loan with a good interest rate.
When you apply for a VA loan the loan officer will run a tri-merge credit report. This is a credit report where all the credit data from all three credit bureaus (Equifax, Experian, Trans Union) is merged together into one credit report, and you get three scores, one from each bureau. VA loan requirements take the middle of the three credit scores as the score that is used for your VA loan approval. So you want that score to be 620 at a minimum, preferably 640.
Now the title of my post is how to quickly boost your VA loan credit score. The main way to accomplish this is something called a credit “Rapid Rescore”. We have a special tool that we use with the credit bureaus that allows us to quickly report any corrections or changes done to you credit in 2-5 days and pull a new score. Without this tool, it can take 45+ days for a correction or change to your credit to report to the bureaus naturally. If your VA loan credit score is not where it needs to be, we will go over your credit report with you and counsel you on what you can do to quickly boost your score to where it needs to be to qualify for a VA home loan. Here are the two most common items that can be “Rapid Rescored” to boost your VA loan credit score:
- Maxed out credit cards: if you have any credit cards where the current balance is >30% of your credit limit, you can pay those cards down to 30% of the credit limit and dramatically increase your score in 2-5 days with a Rapid Rescore
- Mistakes on your credit: almost every credit report I have ever looked at has mistakes. Go through your credit report with fine tooth comb and if anything is a mistake, contact the creditor and get it in writing it’s a mistake and we can remove that item in 2-5 days and this can boost your VA loan credit score dramatically.
So I hope this helps you understand a little bit about quickly boosting your VA loan credit score. Don’t hesitate to email me at homeloan8@gmail.com or call at 858-922-7899 if you need a VA home loan in California and would like to discuss.
Best Regards,
Rob Chomentowski
858-922-7899, homeloan8@gmail.com
Sr. Loan Officer (and VA specialist)
How To Quickly Boost Your VA Loan Credit Score in California is a post from: VA Home Loans Call Rob 858-922-7899
FHA Loan Requirements for Non Occupant Co-Borrowers in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
FHA loan requirements have a great rule where they allow non-occupant co-borrowers to help a borrower applying for a loan qualify for a FHA loan in California. So if you want to get a FHA loan to buy a house in California and you can’t quite qualify on your own, if you have a relative that would be willing to be a co-borrower, this could put you over the top and have to qualify. Here are some main points about FHA loan requirements for non-occupant co-borrowers in California:
- the non-occupant co-borrower has to be a relative
- all the income and debt obligations will be combined for the FHA loan approval
- the FHA lender will take the lowest of the middle credit scores of all borrowers
- FHA loan limits in San Francisco, Oakland, San Jose go all the way to $625,000. FHA loan limits in Orange County, Los Angeles, Anaheim, Santa Ana also go up to $625,000. FHA loan limits in San Diego are $546,250. FHA loan limits in Riverside are $355,350.
- FHA loan interest rates are at ALL TIME lows
- FHA loan credit score does not have to be perfect. Give us a call if you have questions about your credit and we can assist.
Related posts:
- FHA Loans Allow Non-Occupant Co-borrowers In California
- FHA Home Loans Allow For a Non-Occupant Co-Borrower
- FHA Loan Requirements To Exclude Co-Borrower Debt in California
The VA has gone back and forth on this a few times, but as of now VA home loan lenders have lowered the VA funding fee for VA borrowers in California. This is really terrific news because VA home loans already do not require monthly mortgage insurance, and now even the up front funding fee has been reduced substantially. Below are the changes:
| Active duty or Veteran customers | National Guard / Reservist customers |
| First-time use | Subsequent use | First-time use | Subsequent use |
| Through Sept. 30 | On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
| Purchase or Construction loans with downpayment of: |
| 0% | 2.15% | 1.40% | 3.30% | 2.80% | 2.40% | 1.65% | 3.30% | 2.80% |
| 5% - less than 10% | 1.50% | 0.75% | 1.50% | 0.75%
|
1.75%
|
1.00%
|
1.75%
|
1.00%
|
| Greater than or equal to 10% | 1.25% | 0.50% | 1.25% | 0.50% | 1.50% | 0.75% | 1.50% | 0.75% |
| Refinance: Cash-out Refinance or Rate/Term Refinance |
| 2.15% | 1.40% | 3.30% | 2.80% | 2.40% | 1.65% | 3.30% | 2.80% |
| Interest Rate Reduction Refinance (IRRRL) |
| 0.50% | 0.50% (no change) |
- VA loan requirements only require two years after a foreclosure, short sale or bankruptcy to get a VA home loan in California
- VA loan limits are much higher now than FHA or conventional loans. San Francisco, San Jose, Oakland VA loan limits go to $1 million with zero down. Los Angeles, Orange County, Santa Ana, Anaheim VA loan limits are $700,000 with zero down. San Diego VA loan limit is $537,500. Much of the rest of the state such as Sacramento, Santa Rosa, Fresno, Bakersfield, Riverside go up to $417,000 VA loan limit with zero down
- VA funding fee is waived for veterans that receive disability pay
VA Funding Fee is Lowered in California is a post from: VA Home Loans Call Rob 858-922-7899
FHA Loan Requirements After Foreclosure in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
FHA loan requirements only require a THREE year wait after a foreclosure to qualify to buy a home again in California. This is a much shorter wait than conventional financing which requires a SEVEN year wait.
FHA loan guidelines like to see that you have a FHA loan credit score of 640 or above following a foreclosure in your past. Also, FHA guidelines like to see that you have re-established your credit following a bankruptcy. This means that you should have some open and active lines of credit that you have been paying on with out any lates for the last few years after your foreclosure. Be VERY careful about not having ANY late payment or derogatory items on your credit following a foreclosure.
I hope this gives you hope that you can get back into the California market with these record low interest rates and low home prices following a foreclosure in your past. Please don’t hesitate to call me at 858-922-7899 or email me at homeloan8@gmail.com if you have any questions.
Some other benefits of FHA home loans in California:
- FHA loan limits in many areas such as San Francisco, San Jose, Oakland, Los Angeles, Orange County, Anaheim, Santa Ana are $625,000.
- FHA loan credit score does not have to be perfect, a 620 score can still get your the best FHA loan interest rates
- FHA loan down payment is only 3.5% and this can be a gift from a relative
- FHA loan requirements allow for a non-occupant co-borrower.
Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
Related posts:
- Requirements To Get FHA Loan After Foreclosure
- FHA Loan Requirements After Bankruptcy in California
- VA Loan After Foreclosure in California
VA home loan requirements only require a two year wait after a chapter 7 bankruptcy for active military and veterans to qualify for a VA home loan in California. The wait after a chapter 13 bankruptcy is only 1 year. Many times borrowers VA loan credit score had rebounded to over a 640 score in a short time after a bankruptcy, which is where it needs to be to get a VA loan after bankruptcy.
There are some other important considerations when getting a VA loan after a bankruptcy:
- VA loan requirements state that you generally cannot have any derogatory credit items after your bankruptcy. So you cannot be late or have any major credit issues post bankruptcy
- VA loan guidelines also state that you have to have re-established your credit post bankruptcy. This means you have to have open lines of credit that you are paying on time
- For a Chapter 13 bankruptcy, VA home loan requirements state that you must have not missed a payment in your chapter 13 bankruptcy in the last 12 most and the court must approved your new VA mortgage
- VA loan interest rates are now officially at all time lows, meaning they have NEVER been this loan in the entire history of the United States
- VA loan guidelines waive the VA funding fee for veterans that receive disability pay
- VA loan limits are STILL up to $1 million in San Francisco, San Jose, San Mateo, Oakland, East Bay area. VA loan limits in Los Angeles, Orange County, Anaheim, Santa Ana are $700,000 with zero down. VA loan limits in San Diego are $546,250. VA loan limits in Fresno, Riverside, Sacramento, Redding and many other areas loan limits are $417,000. This is at a time when FHA and conventional loans have reduced their loan limits substantially
Best Regards,
Rob Chomentowski
858-922-7899, homeloan8@gmail.com Sr. Loan Officer (and VA specialist)
Get A VA Loan Two Years After Bankruptcy in California is a post from: VA Home Loans Call Rob 858-922-7899