FHA Loans

California FHA Loans

Many people are turning to California FHA loans as a way to finance their home purchase. 5 years ago, not very many people were familiar with FHA loans, but today they are almost the loan of choice for many people not just in California, but also across the US. FHA loans are no longer just for first time home buyers or for people with less than perfect credit – they have become more “mainstream”.

Most people are aware that FHA isn’t actually a lender who lends you money, they only act as an insurance company and insure your loan in the event of default.  This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

California FHA Loan Highlights Include:

  • There is never a prepay penalty for California FHA loans
  • 3.5% down payment for new home purchases
  • Monthly mortgage insurance is required
  • UFMIP is required to be paid, but can be financed into the loan
  • Sellers are allowed to pay closing costs with California FHA loans
  • Popular California FHA loan programs include the FHA streamline, FHA 203k and FHA 85% cash out

With a California FHA loan, you can buy a home, build a home or even get financing for a loan for a home that is in need of repairs or just want to upgrade a home with energy-saving features such as solar heating or cooling systems, water heaters, insulation, weather-stripping, storm windows/doors or other energy efficient improvements approved by the lender and FHA.

California FHA Streamline Refinance

If you currently have a California FHA loan, the California FHA streamline refinance program is one of the most popular choices when it comes time to refinance. With the FHA streamline program, you can get a lower interest rate and get a lower monthly mortgage payment – without having to completely re-qualify for a new loan. FHA designed the streamline program to allow eligible FHA borrowers to save money on their monthly mortgage with minimal qualification criteria. Learn more about the California FHA streamline program.

California FHA 203k Streamline Program

If you are thinking of purchasing a home that needs a few repairs, (many bank-owned properties fit into this category), the California FHA loan 203k streamline program is a great choice. The California FHA loan 203k streamline program allows people to finance up to 35,000 for eligible repairs and improvements and the money can be disbursed directly to the contractors who perform the work. Learn more about the Arizona FHA loan 203k streamline program.

California FHA 85% Cash Out Program

For different reasons, many times people will want to access a portion of the equity in their home. The FHA 85% cash out program makes that possible. For homeowners who are interested in turning the equity in their home into cash, FHA designed the California FHA loan 85% cash out program. With the California FHA loan 85% cash out program, homeowners can get up to 85% of the appraised value of their home in cash – many people use this as a way to consolidate high interest credit cards or pay off other debts.

California FHA Loan Experts: Contact Us

For more information about any of the above California FHA loan programs, you can contact us directly at the toll free number listed above. We would be happy to answer any questions that you may have! You can also submit your information online and we will be in touch with you as soon as possible.

April 26, 2009 0 Comments

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