FHA mortgage California makes your homeownership dream on the West Coast or Pacific Northwest a reality. It comes with one of the lowest down payment rates, at 3.5%, in the state. Only two other programs, USDA and VA, have similar prospects because they also share the same guarantee status from the government.
However, you need to pass a few eligibility particulars for FHA mortgage CA, relating to your financial and tax records. These include:
How Is Your Financial Situation?
Generally, the Federal Housing Administration recommends applicants to meet the following financial obligations:
- You can only access a home whose value is 30 percent of your yearly earnings.
- If you have had a bankruptcy, you can apply 24 months down the line. This is an advantage to post-bankruptcy applicants who cannot access another program due to past insolvency.
If you require help to determine how much you can borrow depending on 30% of your yearly earnings, we will be happy to assist.
Tax Requirements
You do not have to be a consistent levy-payer to secure the FHA loan, but you need to meet the following particulars:
Provide tax returns of the previous 24 months.
- If you are second-time homebuyer, your current property tax record should be flawless, meaning you have been paying your levy.
Other Requirements
The other stipulations that you ought to meet for this scheme are easy. In fact the FHA Home Loan Group will assist you to meet some of the logistical or documentation part, as follows:
- Employment record. Lenders like to work with borrowers who have had a stable job for the past 24 months.
- Income. Lenders will also consider applicants for FHA mortgage CA whose income has shown stability within the last two years.
- Credit Report. In case you do not have a credit document at hand, we can help aggregate your credit score from the three national agencies. With as little a FICO score as 620, you can secure this loan.
On the latter score, you may need to ensure that your credit does not have patches, including two unpaid bills in the past one month.
Who Is Eligible?
Virtually everyone in the Golden State is eligible to apply for FHA mortgage CA as long as he or she has passed the following pre-qualification stages:
- Has found a home whose value does not exceed the county limit. Most counties offer a maximum of $271050 for a single-unit residence.
- You intend to turn the property into your primary residence.
How to Apply
If you have met the above stipulations for FHA mortgage California, then you may start your journey into home ownership via these few steps:
- Submit your loan request.
- Locate a lender with HUD certification.
- Settle for a home that is within the state and is a condo, existing or planned development or even a mobile home.
- Choose a fixed-rate term of 15 or 30 years.
The final step is to settle your closing costs. We can help you make the seller pay up to 6% of the closing costs for FHA mortgage California. With those few financial and tax requirements, this is your best program if you have low income.
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