Important things to know about FHA Loans in San Diego

Second Mortgage Loans San Diego
March 17, 2016
Mortgage Broker La Jolla CA
May 25, 2016

Important things to know about FHA Loans in San Diego

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