- FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. FHA loans are an attractive option, especially for first-time homeowners. These programs are generally easier to qualify for than conventional loans because they have lower down payment requirements among other things. Golden Gate Financial is a leading provider of FHA Loans in Petaluma, Santa Rosa, and Sonoma as well as the whole state of California. for more information in FHA Loans and how to qualify contact us today by filling out the Quite Quote form on the right.
What is a FHA Loan
Most lenders offer FHA mortgage loans. An FHA mortgage loan allows a borrower with lower credit scores and smaller down payments to qualify for home financing on owner-occupied (primary residence) properties only. An FHA mortgage loan can be used to purchase a home or refinance an existing mortgage loan.
Advantages of FHA Loans
As stated above FHA mortgage loans allow a borrower with low credit scores and/or smaller down payments to qualify for financing but also allows for higher debt to income ratios by allowing “compensating factors” to justify approval of mortgage loans with debt to income ratios exceeding FHA’s normal guidelines.
How to qualify for an FHA Loan
Most lenders offer FHA mortgage loans. FHA mortgage loans do require both an upfront mortgage insurance fee and a monthly mortgage insurance premium.
Understanding Mortgage Insurance Premiums (MIPs)
FHA mortgage loans require both an upfront one time mortgage insurance fee as well as monthly mortgage insurance premium regardless of the loan to value (down payment). The upfront mortgage insurance fee is usually financed. The monthly fee is for the life of the loan. The only way to get rid of the monthly mortgage insurance is to refinance out of the FHA mortgage loan.
FHA Loan Limits
FHA mortgage loan limit ceiling in high cost areas increased in 2019 from $679,650 to $726,525. FHA also increased its floor from $294,515 to $314,827.
Apply for an FHA Loan Today!
Call us today if you think you cannot qualify for a mortgage loan to purchase a home or refinance your existing mortgage loan. We have helped many a borrower who did not think they could qualify to purchase a home or refinance their existing home because of low credit scores or high loan to value issues (little equity).