Buying a home does not require perfect credit. An FHA mortgage is an easy qualification loan that features a low down payment and affordable rates.
What is an FHA Mortgage?
An FHA mortgage is a type of home loan backed by the Federal Housing Administration.
With the FHA backing your loan, the risk for your lender is lower than it would be otherwise.
The results for you are lower qualification requirements and fantastic benefits.
What are the Benefits of FHA Loans in California?
- Buy a home immediately, even if you are still raising your credit.
- Purchase a home even if you can only afford a low down payment.
- Closing costs are capped, making it even more affordable to take out your mortgage.
- Interest rates for FHA loans are competitive.
- You can have an FHA loan with a fixed or adjustable interest rate and a loan term of your choice.
- Buy a home, build one, or renovate one with an FHA mortgage. You also can consolidate debts with an FHA loan or you can refinance.
Do You Qualify for a Tustin FHA Mortgage?
You need to meet these requirements to purchase a home with an FHA mortgage:
- The minimum credit score to apply successfully for an FHA mortgage is 500. If you want to be able to make the lowest possible down payment, your score will need to be at least 580.
- Your debt-to-income (DTI) ratio should be in the range of 43-45%.
- Another requirement to apply for an FHA loan is a clear Credit Alert Verification Reporting System (CAIVRS) record.
- After foreclosure, a three year waiting period is required before applying for an FHA mortgage.
- After a bankruptcy, a 12 to 24 month waiting period is required before you can apply for an FHA home loan.
- You must be purchasing a home that is eligible for FHA financing. Such a home must sit on a permanent foundation and serve as your primary residence. The construction date must be no earlier than June 15th, 1976.
Buy a Home with an FHA Loan in Tustin or Nationwide
During your consultation, we can go over the requirements to apply for an FHA mortgage in detail with you and help you find out if you qualify. If you are ready to move into a home with a low down payment and affordable rates, please give us a call today at (949) 751-6940 to schedule your consultation.
We help borrowers apply for FHA mortgages in Tustin, Irvine, Anaheim, Los Angeles, and throughout California and all 50 states.