FHA loans are an attractive option, especially for first-time homeowners in Woodland, as well as all of California, because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.
What is a FHA Loan?
A FHA Loan is provided by the Federal Housing Administration and has a lower down payment.
Benefits of FHA Loans
There are many benefits to FHA Loans beyond just a lower down payment.
FHA Loan Eligibility
FHA Loans have more flexible requirements than a traditional conventional mortgage.
FHA Loan Limits
Different counties have different limits on how much you can borrow for an FHA Loan.
Get Pre-Approved for a FHA Loan
To summarize, FHA loans are a great option, when your credit may not be stellar, but is explainable, and your credit score hasn’t fallen off the table. Also, if you don’t have a lot of money for closing costs and down payment, and/or your income may need some explaining. FHA is pretty forgiving in most cases, so even if you think you can’t buy a home, let’s talk, because many people who have thought the same thing, ended up with the FHA as their lender…and isn’t that the point of all this? Get the financing you need now, and as your financial strength is increased you can look at other lending options.
Call Michael Mitchell, 530-406-2200 or 707-259-1117 or 707-337-5970 mobile.