Buying a home without perfect credit may be easier than you think. With an FHA mortgage, you can unlock the door to affordable rates and other competitive benefits even without ideal qualifications.
What is an FHA Loan?
An FHA mortgage is a loan product that is guaranteed by the Federal Housing Administration (FHA). Guaranteeing your loan means that if you default, your lender has protection.
This reduction in risk has benefits for you as the homebuyer. The qualification requirements are lower, and the terms of the loan are more favorable.
Benefits of an FHA Loan in Corona
- Buy a home with a low down payment.
- Qualify for affordable rates even without perfect credit.
- Upfront costs are affordable for FHA mortgages thanks to capped closing costs, which the seller may pay.
- A variety of loan terms are available, and you can choose a fixed or adjustable mortgage rate.
While FHA down payments are low, you may also qualify for additional Down Payment Assistance.
Qualifying for an FHA Mortgage in CA
Qualifying for an FHA mortgage can be easier than qualifying for some other types of home loans. Here are the basic requirements to meet:
- The minimum credit score range is 500-580.
- Your debt-to-income ratio should be 43-45% or lower.
- You must show a history of steady employment for at least the two most recent years.
- You need a clear Credit Alert Verification Reporting System (CAIVRS) record.
- The property you are buying must be your primary residence, and built on a permanent foundation. The construction cannot predate June 15th, 1976.
- You must wait 12-24 months after a bankruptcy to apply for an FHA mortgage, or 3 years after a foreclosure.
Buy a Home with an FHA Loan Now
An FHA mortgage can bring your dreams of homeownership within reach. Please contact us today at (951) 531-1399 to schedule your mortgage consultation. We work with homebuyers throughout California, Florida, Oregon, Nevada, Colorado and Washington State.