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
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