An FHA Loan enables a buyer to purchase a home with down payment less than the “traditional:” 20% down payment as required by Fannie Mae & Freddie Mac. With an FHA loan, the down payment can be as low as 3.5% of the purchase of the purchase price. However, as an FHA loan is “backed / guaranteed by the U.S. government, because of the low down payment, M.I.(Mortgage Insurance) is required. This will be required until a 20% LTV, (loan to value), is achieved. FHA also provides an FHA203K loan which will allow a buyer to purchase a home in need of repair. Please contact Kenny for more information on ALL FHA Loan Programs.
FHA loans - Ventura Mortgage Broker
Approximately 40% of all home loans in the US are made available by the Federal Housing Administration (FHA). The requirements to qualify for an FHA Loan are less stringent than the requirements for a Conventional Loan.

2018 FHA Loan Requirements:

  • 500 to 579 FICO score requirement* and 10% down payment
    OR
    580 or above FICO score requirement with least a 3.5% down payment
  • An appraisal must be done by an FHA approved appraiser
  • Mortgage insurance (MIP) usually around 0.85 percent of the loan amount annually
  • Steady employment with proven income with recent tax returns, W2’s, and paycheck stubs
  • Two years of employment at the same company
  • Must occupy the home as primary residence
  • At least 18 years of age

FHA Loan Advantages:

  • They are very popular for first-time home buyers because of their flexible qualifying guidelines and low down payments
  • Borrowers with credit scores as low as 500 can qualify for an FHA loan
  • Lower income borrowers are able to get approved for a home loan through the FHA due to the FHA allowing lenders more flexibility on debt to income ratios than conventional mortgages
  • Lower interest rates when compared with conventional loans, which can result in large net savings over the lifetime of a loan

Disadvantages:

  • Lower loan limits
  • Homes that need renovations do not qualify
  • Mortgage insurance is required and Mortgage insurance costs are higher upfront
  • More required paperwork

We are hopeful above information was beneficial. For more information, please contact Kenny Minkel @ his direct # (805) 320-7898, or via E-mail @ Kenny@CoastPro.net