Many people think FHA loans are for first time home buyers. Maybe they think it stands for “First Home”, but it does not. It stands for Federal Housing Administration. Anyone can apply for a FHA loan, even if you have multiple properties!
If you don’t have the 3.5% for a down payment, you can get this from a relative. Credit score not good? That’s not too much of a problem as FHA loans can still work with you and get you a great 30 yr fixed rate. These rates are comparable to conventional loans.
If you get a FHA loan, the house has to be your primary residence. If you don’t qualify on your own for a FHA loan, you can get a non-occupying co-signer to help you. You can only have 1 FHA loan at a time, but there are sometimes exceptions.
FHA loans are currently up to $625, 000. This is expected to go up to $729,000 after the government stimulus bill.
With low rates, falling house prices in California, and a FHA loan with 3.5% down, your mortgage payment could be very close to what you are paying in rent!
