C2 Financial Corp - top rated mortgage lenders california
Do You Qualify for an FHA Loan in California?
We work hard to provide the competitive rates for FHA loans in California and make sure the process is as straight-forward and simple as possible.
We Offer FHA Loan Low Rates & Fast Closes Ensuring You Secure The Best Loan
Why Choose An FHA loan in California?
FHA loans in California are an appealing option, especially for first-time homeowners with lower credit scores. FHA mortgage loans are backed by the Federal Housing Administration. FHA loan requirements in California are more flexible, but borrowers must obtain up-front mortgage insurance and sustain it for the loan’s life. Mortgage insurance offers a lower risk for FHA lenders in California, which means it’s much easier for potential homebuyers to qualify. FHA loans are more forgiving on debt ratios, and borrowers can put down as little as 3.5%, making them a great option if you don’t have a lot of cash on hand when looking to purchase a property.
FHA loans san diego & California
FHA Loan Qualifications
To qualify for federal home loans in San Diego and California, the homeowner must meet individual income, credit score, and property values, as well as other criteria set by the US Department of Housing (HUD). FHA loan programs are a great option for many families, even those with not-so-great credit scores. FHA loans San Diego offer flexible qualifications and various lending terms that can make your home-buying experience more affordable than ever.
While FHA loans are easier to qualify for than conventional loans, there are a few qualification requirements:
A Down Payment
The down payment needed for an FHA loan is 3.5% of your purchase price and you can pay this in cash or with gift money.
Primary Residence
To qualify for a FHA loan the home must be the borrower’s primary residence.
Home Qualifies
The home must fit the qualification requirements for an FHA loan.
Delinquent Federal Debt
Borrowers should know that the debt does NOT have to be paid in full – arrangements can be made with the government and FHA loan rules. This includes unpaid federal taxes, student loans, and other financial obligations.
Credit Score
The Federal Housing Administration, or FHA, requires a credit score of at least 500 to buy a home with an FHA loan. A score of 580 is needed to make the minimum down payment of 3.5%. A good credit score will land you a low-interest rate on the loan and provide you better terms.
No existing FHA loan
You can get multiple FHA loans in your lifetime, however you can only have one FHA loan at a time.
how to apply for an FHA loan in California
Our Process
We make it easy with six simple steps that are designed to achieve your financial goals.
1. Consultation
We will walk you through the loan process, evaluate your needs, set expectations, and finally discuss the options that are best for you.
2. Application
You will complete an application and submit any requested documents.
3. Appraisal
We will set up an inspection of your property and give you a copy of your appraisal once completed.
4. Underwriting
We then will review your property details, income, assets, and debts.
5. Approval
Once all conditions have been reviewed and are satisfied, your loan will then be approved.
6. Closing
You will sign your final loan documents, and then the loan will be available for funding.
FHA loans san diego & California
FHA loan requirements california
Qualifying for an FHA Loan in California is not as difficult as it seems. You will need to provide us with your pay stubs, W-2s, and in certain situations, tax returns.
Buyers must be able to provide the following information and documents as required:
- Address of residency from the past 2 years
- Name of employers from the past 2 years
- W2's from the past 2 years
- Current paycheck stubs
- Current gross monthly salary
- Names, addresses, and account numbers with balances on all checking and savings accounts
- Addresses and loan information of any other real estate you owned
- Social Security Number
- Students will need to provide evidence of enrollment. If you have student loans, you need to provide confirmation information.
- If self-employed, you will need to provide personal tax returns for the past 2 years and a current income statement and balance sheet for your business.
Many first-time homebuyers in San Diego and California utilize FHA loans due to the low-down payment and flexibility, but not all who choose this option are new to homeownership. Anyone can use an FHA Loan in San Diego to buy or refinance a primary residence. FHA-insured loans make homeownership affordable and obtainable for many borrowers in the area, giving them access to the homes of their dreams.
If you are looking to buy a home but unsure which mortgage program is right for you, contact Dennis at C2 Financial Corp on 619-391-3707. As experienced FHA lenders in California, we have helped many residents move into their dream home!
FHA loans san diego & California
Benefits of FHA loans in California
FHA loans in California are a great opportunity for people who want to be homeowners but can’t afford the initial investment. The rates on FHA loans in California are attractive, and the requirements to get approved are much lower than with conventional loans.
Benefits of using an FHA loan include:
- Lower down payment. The money for your down payment does not have to be your own. It could be donated from a family member or assisted funds. Be sure to look at all resources available to you.
- Lower credit score accepted: There are options available for scores in the 500's.
- Low-Interest Rates: FHA loans can provide a lower interest rate compared to conventional mortgage rates for buyers with a lower credit score.
- Allows non-occupying co-borrowers: When buyers can't qualify for the loan themselves, they can have a co-borrower's help. This co-borrower's income will be reviewed when qualifying, and if it is enough, the buyer will be approved.
- Assumable: This allows a buyer that is a qualified purchaser who can apply to assume your loan if they meet specific criteria such as high enough income and good credit history.
An FHA loan in California is also a good option for those who have filed for bankruptcy or foreclosed in the past. No matter your financial history, if you have filed for bankruptcy and it’s been two years from your date of discharge or had a foreclosure, and it’s been three years after the final date of the foreclosure, then you may qualify for an FHA loan. If you have any questions about this process, please contact our office, and we will be more than happy to help!
