Santa Rosa FHA Mortgage Broker
FHA home loans have been helping people become homeowners since 1934.
Some of the benefits are:
- Low down payments (as low as 3.5%)
- Low closing costs
- Non occupant co-signer ok
- Gift funds for down payment accepted
- Easy credit qualifying (down to a 580 with 3.5% down)
America’s Home Loans offers some of the most competitive rates available for the FHA home loan product—our rates are often far lower than many of our competitors.
Here are a few details:
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be financed in the loan. Available on 1-4 unit properties. The loan limit for Sonoma County is currently $764,250.
Want a fixer-upper?
FHA has a loan program that allows you to buy a home, rehabilitate it, and include all the costs in one loan (203K). Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.
How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing—as long as you will own the property that the manufactured home is affixed to.
FHA mortgages are home loans that are insured by the Federal Government. This insurance protects the lender from losses suffered if the home goes into foreclosure. It is not the same as hazard insurance or insurances that pay in the event the borrower dies or becomes disabled.
FHA allows a buyer to purchase a home with as little as 3.5% down. They tend to be more lenient on areas such as credit, funds to close and non- occupant co-borrowers.
Most loans use a method of analyzing credit called credit scoring in the underwriting process. Studies have demonstrated a direct relationship between low credit scores and higher mortgage delinquency rates. As a result, many lenders have established minimum credit scores at which they will accept loans. Unfortunately, a lack of credit, old delinquencies or incorrect information on the credit report can cause a low credit score. FHA does not have specific credit score requirements. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial. If the credit scores are low, then it is up to the borrower to demonstrate his/her ability and willingness to pay the loan back. This allows the borrower to explain the circumstances surrounding the credit difficulties and have that explanation considered in the underwriting process.
The underwriter on an FHA loan will review the credit and payment history of a customer concentrating on the most recent 12 to 24 months. If the customer has had a good payment record recently, they can often get approved for a mortgage even when Conventional financing has turned them down. An experienced loan officer can help the customer clearly tell their story and will often make suggestions as to how to make the file more acceptable to FHA. Because of FHA's leniency, some borrowers with past credit problems elect to use FHA for loans when they have a substantial down payment rather than getting a higher interest rate conventional loan. FHA tends to be more flexible than Conventional financing in the money needed to purchase the home.
FHA allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.
Need an FHA home loan in Santa Rosa? Call us (707) 579-5411.