Buying a House in California with FHA or Down Payment Assistance
Buying A Home In California With a FHA Mortgage has soared in popularity because first time buyers appreciate the small down-payment and easy credit requirements.
A FHA mortgage is an excellent resource that people with no credit or low credit can use to purchase a home. These mortgages often come with low down payments, affordable interest rates, and other benefits not offered by typical home loans, and finding a FHA approved lender in the state of California may be a great bet for those looking to close on their first home or another home purchase. First time home buyers within the state of California often find these FHA loans to be great options due to their very low down payment rates and competitive interest.
FHA insures a mortgage that encourages lenders to trust loaning money to borrowers who may have credit blemishes or a low credit score. It also allows all types of home buyers to close on a loan with a significantly lower down payment than what is found with traditional mortgage loans.
One aspect of FHA mortgages that should always be researched before applying for a FHA is the local limits and the down-payment assistance in California. These loan limits are limits on the price of a home that a person can apply for a first time home mortgage and each region within the state will have its own individual limit. For lower income areas, loan limits will typically be lower, and this trend will follow with higher income areas as well. Normally, the loan limits for FHA loans within an area will go along with the median home prices found on the market within any given California region.
The loan limits in high cost areas within the state of California will reflect the median prices within the region, and in areas such as San Francisco, prospective home buyers can obtain a FHA home loan with limits as high as $790,000. In lower income areas such as Riverside, a loan limit of $210,000 will be put in place to reflect the lower local home price range.
Buying a California home using down-payment assistance from HUD is an option that many home buyers may find more beneficial than going the route of a traditional non FHA home loan. These loans allow home buyers to close more quickly and affordably by including low down payments and affordable interest rates over time. While these types of loans may not be for every home buyer, they are worth looking in to when purchasing a California home.
Housing and Finance Resources in California:
CALHFA Loan Programs - Discuss the 2 CalHFA options with an experienced lender: CalPLUS and CalHFA FHA Loan Program.