FHA loans are an attractive option, especially for first-time homeowners in La Mesa, 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 a loan used for either purchase or refinance that is insured by the Federal Housing Administration. FHA loans tend to have lower interest rates, but higher upfront costs associated with the loan. They have down payment requirements as low as 3.5%. FHA loans tend to have more lenient guidelines than conventional, such as lower credit score requirements and shorter seasoning periods on derogatory credit events (Bankruptcies, Foreclosures, Etc.).
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
The nationwide loan limit is $275,665. However, different counties have different limits on how much you can borrow for a FHA Loan. San Diego County has a loan limit of $612,950.
Ask a Question About a FHA Loan
If you are a first time home buyer, in the market to purchase, or simply seeking to refinance into a FHA loan La Mesa, El Cajon, Alpine CA, Mt. Helix, greater San Diego or anywhere in the state of California, contact Craft Home Loans at (619) 867-0975 for more information, or fill out the form on this page.