FHA Loans

What Is a Federal Housing Administration Loan?

Federal Housing Administration (FHA) loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration. FHA loans require lower minimum down payments and credit scores than many conventional loans and thus making it attractive for many borrowers. I mean in today’s world who doesn’t have credit score issues?

As of 2019, in Rocklin, CA you can borrow up to 96.5% of the value of a home with an FHA loan (meaning you’ll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit score falls between 500 and 579, you can still get an FHA loan provided you can make a 10% down payment. With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.

All these factors make FHA loans popular with first-time homebuyers.  Keep in mind that FHA loans are NOT limited to first time home buyers.  Every borrower’s situation is different and unique so the best option is always speak to a professional to find out what your options are.  

To learn more or to see if a FHA loan is the right loan for you please contact us today!