How to Get FHA Loan After a Loan Modification in California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Over the past three years many homeowners have had their mortgage loans modified by their mortgage lender because they have been unable to make payments on their loan because of the economy, falling home prices, or because they were stuck in an adjustable loan. But now some of those homeowners are back on their feet financially and would like to sell or move out of their primary residence where they had the mortgage loan modification, and take advantage of the current extremely low home prices in California and buy a NEW primary residence with a 3.5% down FHA loan and a low 30 year fixed rate mortgage loan.
There is a wide variance of how lenders are treating new borrowers who want to qualify for a FHA loan after a loan modification. Many lenders are saying if the loan modification is reporting on the credit report as “settled for less than full balance”, they will treat this the same way as a short sale or foreclosure and you will have to wait three years after the loan modification to get a new FHA loan. However, even if you have you loan modification reported this way, we are able to qualify you for a new FHA loan mortgage as long as you did not have any late payments leading up to the loan modification and you have had no lates on the modified loan in the last 12 months.
So if you have had a loan modification and you are interested in getting FHA loan approval to buy a new house in California give us a call. We can discuss your situation, check your credit to see how the loan modification is reporting to your credit, and possibly get you approved to buy with FHA financing.
Here are some of the very latest up-to-the-minute highlights of FHA mortgage loans:
- FHA loan limits in many California areas such as Los Angeles, Orange County, San Diego, San Francisco, and San Jose go up to $729,750. This would allow you to purchase a property of up to $756,000 with a 3.5% down FHA home loan.
- FHA loan down payment is only 3.5% and this can be a gift from a relative
- FHA loan credit score only has to be 620. And if you score is below 620, we can assist you in quickly improving your credit score to qualify FHA loan.
- FHA loan rates are incredibly low right now
- FHA loan requirements allow you to have a non-occupying co-borrower to help you qualify FHA loan
So feel free to email or give us a call if you have any questions at all about getting approved for mortgage financing.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and Homepath, FHA, VA specialist)
858-922-7899
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