FHA Mortgage California
FHA loans are often times used with down payment assistance and first time home buyer programs because of flexible qualifying criteria and great interest rates. They are popular with college graduates, first time home buyers, low-to-moderate income earners, new homeowners and those who have had past credit challenges.
Some barriers these loans help to overcome:
- Saving for a down payment
- New job or career
- Past credit problems
Even if you’ve been through bankruptcy, foreclosure or short sale, FHA mortgage loans are still an option. As a reminder, you don’t have to be a first time homebuyer to qualify for an FHA loan with down payment assistance in California. Depending on your personal situation (foreclosure, short sale, etc.), the waiting period for this type of loan will be different. However, FHA loans typically offer shorter waiting periods than traditional conventional loans.
Advantages of FHA loans:
- Great interest rates
- No income limits
- Flexible qualifying guidelines
- Seller can pay closing costs (up to 6% of sales price)
- Gifts are allowed
- No prepayment penalties
FHA Loan Limits California
It is important to know California FHA loan limits because they impact a variety of down payment assistance programs offered in California.
You can view the FHA limits in California here.
Waiting Periods – California FHA Home Loans
Note: Many buyers looking to obtain an FHA mortgage in California may know that there are shorter waiting periods due to the FHA Back to Work program. However, because of that program’s restrictive circumstances, it is best to know the typical FHA waiting periods.
Below are standard waiting periods for the major derogatory credit events.
- California FHA home loan after bankruptcy: The waiting period for getting an FHA loan after a chapter 7 bankruptcy is 2 years. The waiting period for getting an FHA loan after a chapter 13 bankruptcy is 1 year.
- California FHA home loan after foreclosure: The waiting period for getting an FHA loan after a foreclosure is 3 years after the foreclosure.
- California FHA home loan after short sale: The waiting period for getting an FHA loan after a short sale is 3 years.
Still want to know more about FHA loans? Find out everything you need to know about FHA loans in California here.
Lenders authorized to offer FHA loans that accept down payment assistance in California are FHA-approved lending institutions and are not acting on behalf of or at the direction of HUD/FHA or the Federal government.
VA | USDA | CONVENTIONAL
