FHA Loan Highlights in San Diego

FHA home loans can be a valuable option for home buyers and home owners in San Diego (and the rest of California).  There are a number of factors that make FHA home loans unique and sometimes the only choice for certain home owners and home buyers.  Below I will point out some of the factors that would make a home buyer or home owner choose a FHA home loan over a conventional loan:

  • FHA only requires a three year wait after a prior foreclosure (conventional requires a seven year wait)
  • FHA loan limits in San Diego County are $546,250 (loan limits in Los Angeles, Orange County are $625,000)
  • FHA down minimum down payment is 3.5%
  • FHA still allows up to 55% debt-to-income ratios where conventional with a low down payment is generally about 45%
  • FHA only requires a two year wait after a prior bankruptcy to apply for a FHA loan (conventional loans require a four year wait)
  • FHA loans allow a cash out refinance to 85% of the property value with just a 620 middle credit score
  • FHA loans allow a non-occupant co-borrower
  • FHA loans allow all of the down payment to be a gift from a relative
  • FHA loans require a three year wait after short sale (conventional loans with less than 20% down require a four year wait after short sale)
  • You can get a FHA home loan with as low as a 560 credit score
  • FHA interest rates are not as credit score driven as conventional loans, which means even if you have a low credit score you will get an excellent interest rate

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