FHA Loans


FHA loans are an attractive option, especially for first-time homeowners 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 only 3.5% down and has less conservative lending guidelines in comparison to a Conventional loan. Here are a few of the highlights and benefits of an FHA loan:

*Your down payment could be as low as 3.5%.

*There is no limit on borrower income, and there is also more flexibility when it comes to your credit score.

*A higher debt-to-income ratio which might stand in your way with conventional financing may be acceptable with an FHA loan in San Diego.

*FHA loans usually have lower interest rates than conventional loans.

*You may obtain an FHA loan not just for a home purchase, but also for renovation, a cash out refinance, reduction in interest rate, reduction in term, or even a reverse mortgage.

*If you have filed for bankruptcy, two years from the date of your discharge, you may qualify for an FHA loan with re-established credit.

*If you have foreclosed in the past or had a short sale, three years after the final date of the foreclosure or short sale, you may be eligible for an FHA loan provided you have maintained good credit.

The pre-approval process is easy and in most cases can be completed within 48 hours.

Contact us today to learn more!