FHA Loans

What is an FHA Loan?

FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA).  Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.  Typically the borrower can be approved with 3.5% down vs up to 20% that is required on other loan programs.  If you are looking to buy a home in Eureka, McKinleyville, Arcata or Fortuna as well as the entire state of California, contact us today at 707-445-3027 or fill out quick quote.

Advantages of FHA Loans

  • Purchase/Refinance (refi up to 96.5% LTV)
  • Low down payment-
    • Minimum 3.5%  down
    • 100% financing available to borrowers that meet FICO and income requirements
  • Sellers may contribute up to 6% toward your closing fees
  • 1-4 unit family residence
  • Non-occupant co-borrowers permitted
  • Great option for less than perfect credit borrowers-
    • Minimum credit score 500 with 10% down payment
    • Minimum credit score 580 with 3.5% down payment
  • More flexible underwriting qualifications

Mortgage Insurance Premiums

Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums:  one is paid in full upfront — or, it can be financed into the mortgage — and the other is a monthly payment.

FHA Loan Limits

The Federal Housing Authority sets maximum mortgage limits for FHA loans that vary by state and country.  To find out FHA mortgage limits in Humboldt County, call 707-445-3027.

Qualify for an FHA Loan Today

If you are are seeking a low down payment mortgage in Eureka, Arcata, McKinleyville, Fortuna or anywhere in California we can help.  We are committed to helping California realize the dream of home ownership.  For more information on FHA loans or how to get started contact us today at 707-445-3027 or fill out the quick quote.