FHA Loans

Changes to the FHA program have made these loans easier, faster and a great choice for California homebuyers. Due to the previous low loan limits, FHA loans have not been practical for use in high cost areas. The new increased limit in some areas is as high as $729,750.

FHA loans are fully back by the federal government and are generally less expensive than conventional loans. Qualifying for an FHA loan can be much easier than with other types of home financing. You don't need to have perfect credit and even borrowers with no credit scores are allowed to obtain FHA financing.

Here are a few highlights of FHA financing:

•  Great for first-time home buyers
•  Up to 6% of funds are allowed from a third-party gift for down payment and closing costs
•  No cash reserves are required (for 1 and 2 unit properties)
•  Flexible credit requirements
•  Low down payment requirements - as little as 3% down
•  Up to 6% in seller concessions allowed
•  Owner-occupied refinances are allowed
•  May be able to qualify with only two years discharge from Chapter 7


A review of FHA benefits and requirements should now be a part of any purchase or refinance loan consultation.