FHA Financing
While conventional mortgages require a solid credit history and a large percent down the FHA loan program is designed to help homebuyers who don’t have a significant down payment on a home or who have less-than-perfect credit ratings. This mortgage program requires just 3.5 percent for the down payment and puts less of an emphasis on a borrower’s credit rating, allowing those with bankruptcy or foreclosures on their record or limited credit histories to qualify for a loan.

The Federal Housing Administration does not manage or offer these loans directly. Instead, they insure the lender against the risk of loss through homebuyer paid mortgage insurance. Otherwise known as MIP, the mortgage insurance premium is added to the principal of the loan or if borrowers choose they can pay for at closing. In addition to the up front insurance premium, borrowers are also required to pay a monthly mortgage insurance payment when the loan is amortized over thirty years.

An additional feature to the FHA home loan program is the loan limit for the county in which the property is located. The Department of Housing and Urban Development has pre-determined maximum loan amounts for all regions of the country, however most first time homebuyers don’t normally need to exceed the current county limits.

If you don’t meet the VA guidelines, perhaps an FHA mortgage is the answer for you. The Home Loan Specialists at Home Savings of America are ready to help you with the application and approval process, so contact us today to learn more about this affordable loan option.

C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker # 01821025; NMLS # 135622. C2 Financial is a VA approved lender; not endorsed or sponsored by the Department of Veterans Affairs or any government agency. Loan approval is not guaranteed and is subject to lender review of information. Loan is only approved when lender has issued approval in writing. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. This licensee is performing acts for which a real estate license is required. C2 Financial is licensed by the California Bureau of Real Estate: Broker #01821025. NMLS #135622. California Bureau of Real Estate #01326712, NMLS#84095.
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