FHA Loans in California
The FHA mortgage program has been a lifesaver for many Americans since its inception. The loan is insured by the Federal Housing Administration (FHA) and offered by mortgage lenders. Its popularity is fueled by its affordability coupled with relaxed qualification standards. If you are in California and thinking of buying a home it should be among your mortgage considerations. Moreira Team can help you apply for a California FHA loan and ensure that you qualify for it.
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FHA Loan Requirements in CA
Qualifying for a California FHA loan is not hard. You only need to make a down payment of 3.5% of the total loan amount and have a credit score of at least 640. Ideally you want your scores at 660 or higher so you can qualify for the best rate and the lowest payment. But that will depend on your credit history and other outstanding factors, something that Moreira Team can gladly help you with.
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Other than a good credit score and down payment requirements, California FHA loans also have fairly low-interest rates. In fact, the current market is more buyer-friendly than it has been in a long time. Plus the FHA allows sellers to pay up to 6% of the closing costs. Other loans have a maximum of 3%, so depending on how you negotiate with the seller, you can reduce the costs of your loan significantly.
In the majority of California Counties, the base maximum limit for FHA loans is $356,362 but there are counties with higher limits. In Amador county the limit goes up to $364,550. Calaveres, Inyo, Sutter and Yuba counties have a limit of $373,750. Stanislaus county has a slightly higher limit at $396,750. In Mendocino county the limit is $442,750 and in Alpine county it goes up to $463,450. San Bernardino and Riverside Counties have an FHA loan limit of $477,250. San Joaquin county comes in at $483,000. Nevada, Mono and Solano counties have limits of $526,700, $529,000 and $550,850, respectively. El Dorado, Placer, Sacramento and Yolo counties have a limit of $598,000. San Luis Obispo county has a limit of $701,500 and Sonoma county a limit of $707,250. Monterey and Ventura county have a loan limit of $739,450 and San Diego county is the only county with a limit of $753,250. Napa county is also the only county with a loan limit of $816,500. Ten of the larger counties, including Los Angeles, Alameda and San Francisco counties have a loan limit of $822,375. No matter what county you are in, if you need help applying for a California FHA loan Moreira Team can help. Give us a call or apply today.