FHA

100.5%

Down Payment


Fixed Rate


Mortgage Insurance


Minimum Credit Score: 580


Best for people with below average credit or high debt-to-income ratios.

California FHA Home Loans
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Pros and Cons

Pros

FHA loans having mortgage insurance provided by the Federal Housing Administration. FHA is ideal for buyers with less than perfect credit scores. FHA will also frequently allow you to purchase a higher priced home than some other loan programs will allow.

  • 3.5% down payment
  • Allows for a higher debt-to-income ratio
  • Lower rates than many programs
  • Buy a multi-family property with 3.5% down

Cons

The primary downfall of an FHA mortgage is that the mortgage insurance lasts for the life of the loan. If you have very high credit scores the mortgage insurance for FHA may also be higher than a conventional mortgage. It is important that we review your individual situation to find the best option.

  • Mortgage insurance lasts for the life of the loan.

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The Bottom Line

If you have a credit score from 580-700, want to purchase a duplex and live in one unit, or want to maximize the price of home you can purchase, then an FHA just might be the right loan for you. Get ready to start realizing the benefits of home ownership!

Ready to Apply for a FHA Loan?