There is another type of loan that can be used by those who are buying a property in San Diego, CA – FHA loans. It is a great option for first time buyers who need financing to purchase a home. In fact, 20% of buyers make use of FHA financing to buy properties today – that is 1 out of every 5 buyers.

Are FHA Loans the way to go in San Diego?

Here are some things that should be known about FHA loans:

• FHA loan stands for Federal Housing Assistance loan
• FHA loans are meant to help first time homebuyers (keep in mind this type of loan is not restricted to first-time homebuyers alone)
• With FHA loans, a home buyer can be approved even if their credit rating isn’t the best
• The only way to cancel – refinance out of the FHA and into a conventional loan. It should be noted that if one puts down less than 10%, FHA MIP (mortgage insurance premium) for the life of the loan will have to be paid – if more than 10% down, FHA MIP will cancel after 11 years.
• Most FHA loans require 3.5% down payment, which is calculated against one’s home’s purchase price
• FHA home buyers are allowed to go for 3-4 unit purchase; that means, one can live in one unit while renting the other units out.
• With FHA loans, FHA itself does not make loans, but rather it ensures loans made by private lenders
• After short sales, buyers have a 3-year waiting period before they can repurchase again using FHA refinancing.
• Maximum loan amount in SAN DIEGO County: Single – $580,750; Duplex – $743,450; Tri-plex – $898,700; Four-plex – $1,116,850 (for list of maximum loan amount in other areas in California, visit FHA dot com.

Home Plus Mortgage – provider of most competitive and convenient loans

For more information on FHA Loans in San Diego, contact our experts at Home Plus Mortgage. Our company has been the go-to place for clients who need assistance for purchase, refinance and debt consolidation loans.

Call today (800) 958-7587