FHA loans are an attractive option, especially for first-time homeowners in El Cajon, as well as all of California, because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs.
What is a FHA Loan?
Anderson American Mortgage and Real Estate Network (AAMREN) offers FHA loans. An FHA loan is a mortgage that’s insured by the Federal Housing Administration. Borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 500 or higher.
Benefits of FHA Loans
Work with an AAMREN originator and you will see that there are many benefits to FHA Loans beyond just a lower down payment. The FHA allows buyers to get a mortgage with a down payment as low as 3.5 percent and the underwriting requirements to qualify for an FHA loan generally are less stringent than for conventional loans. You may qualify with a score as low as 500.
FHA Loan Eligibility
AAMREN originators will show you that FHA Loans have more flexible requirements than a traditional conventional mortgage. In fact, an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan. There are no minimum or maximum income requirements and the guidelines are set to focus more on the customers ability to repay the loan.
FHA Loan Limits
Contact an AAMREN originator for information on your zip code because different counties have different limits on how much you can borrow for an FHA Loan. For more information on each county in California you can go to:
Get Pre-Approved for a FHA Loan
If you are a first time home buyer, or simply seeking a lower down payment in El Cajon, or anywhere in California, contact Anderson American Mortgage and Real Estate Network at (619) 654-3995 for more information, or fill out the form on this page.