FHA Loans

FHA Loans for First Time Home BuyersFirst time home buyers are often attracted to FHA Loans because they are insured by the Federal Housing Administration (FHA). Because the federal government insures these loans for FHA approved lenders, the risk of loss if a borrower defaults on mortgage payments is reduced, meaning lenders are willing to lend to a wider group of applicants. Although typically down payments on other loan programs require 20% down, FHA borrowers can be often be approved with just 3.5% down. Vicky Kelly Global Mortgage offers FHA Loans to borrowers in Rancho Cucamonga, Upland, Ontario, Fontana, Pomona, Corona, as well as the entire state of California.

What are FHA Loans?

FHA Loans are offered by the Federal Housing Administration. Established in 1934, the FHA has the mission of improving the housing market for home buyers by protecting lenders. Since it was founded, the FHA has insured over 34 million mortgages in the United States, meaning it is the largest insurer of mortgages on Earth.

Since these home loans are insured by the FHA and federal government, lenders are protected from loss, meaning they can offer FHA Loans with more flexible eligibility requirements, more competitive interest rates, and lower down payments. In addition, down payments are allowed to be gifted from an acceptable donors. With a down payment of only 3.5%, and credit scores as low as 580, many first time home owners can potentially qualify for FHA Loans.

Benefits of FHA Loans

There are many advantages to FHA Loans, particularly for first time home buyers. These home loan mortgages can be used for refinancing an existing mortgage, financing special renovation projects, purchasing new homes, or even reverse mortgages for homeowners over 62 years old. Some of the benefits of FHA Loans include:

  • Low Down Payments down to 3.5%
  • Higher debt to income ratios allowed. The limit is currently 31% front-end and 43% back-end, or lower
  • Cash-Out Refinances available
  • FHA Streamline Refinances can help lower interest rates on existing home loans
  • Non-occupant co-signers can help with down payments, debt to income ratio, and credit requirements
  • Borrowers can be approved with credit scores as low as 580
  • FHA Loans are assumable if the borrower sells the property
  • FHA Loans have a short seasoning period even after a prior bankruptcy, foreclosure, or short sale

FHA Loan Limits

The amount you can borrow for a FHA loan depends on the county in California in which you live.

County Single Family Two Family Three Family Four Family
Los Angeles County $679,650 $870,225 $1,051,875 $1,307,175
Orange County $679,650 $870,225 $1,051,875 $1,307,175
Riverside County $405,950 $519,700 $628,200 $780,650
San Bernardino County $405,950 $519,700 $628,200 $780,650
San Diego County $649,750 $831,800 $1,005,450 $1,249,550

For loan limits in other counties, visit the Housing and Urban Development (HUD) Website or contact Vicky Kelly Global Mortgage at (951) 675-0257.

Am I Eligible for a FHA Loan?

Like other loans insured by the federal government, FHA Loan eligibility requirements are more flexible than conventional mortgages. There are only a few conditions borrowers must meet to acquire a FHA Mortgage:

  • Debt to income ratio of no higher than 43%. In some special circumstances, debt ratios up to 50% may be considered, but will have additional requirements for the borrower.
  • The property being purchased must meet specific criteria for safety, structural integrity, and security. To learn these criteria, visit the FHA Website.
  • Credit scores of 580 or higher. In some special circumstances, credit scores between 500 and 579 may qualify, but borrowers with these credit scores will have additional requirements and conditions. This may include a higher down payment such as 10%.

Get Pre-Approved for a FHA Loan

If you are a first time home buyer, or simply seeking a lower down payment in Rancho Cucamonga, Upland, Ontario, Fontana, Pomona, Corona, or anywhere in California, contact Vicky Kelly Global Mortgage at (951) 675-0257 for more information, or fill out the form on this page.