FHA Loans

FHA was created by the Federal Government to provide affordable housing financing for qualified borrowers. FHA insures the loan, limiting the lender’s risk.

FHA Loan Requirements

FHA requires down payment of 3.5%. Borrowers must provide proof of sufficient income to show ability to pay the mortgage. FHA guidelines are more relaxed, such as; a bankruptcy that was discharged at least 2 years ago, the use of alternative credit (utilities, cable TV, auto or medical insurance premiums, child care, school tuition, furniture or appliance store accounts) in lieu of traditional credit, and higher debt to income ratios.

FHA Loan Benefits

FHA requires very little down payment—about 3.5%–compared to between 10-20% for conventional loans. The down payment money can be a gift. No reserves are required. Lending standards are much more relaxed when with conventional loans. Rates are extremely competitive with conventional loan rates.

Interested getting more info on FHA loans to buy a home in Coronado, CA or greater San Diego? Contact us anytime.