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FHA Home Loans in Upland

FHA loan in Upland, California help borrowers pay lower mortgage payments and lower interest rates. But before you can make the most out of this, you have to qualify for the FHA loan. FHA is short for Federal Housing Authority which is actually a division of the department of Housing and Urban Development (HUD). The FHA is responsible for administering various federal housing programs, one of these is the FHA mortgage loan program. An FHA loan is often a regular mortgage loan that the Federal Housing Administration protects with respect to the borrower against a default on the loan.



Loan providers who issue mortgages with the FHA program have that extra level of protection and as a consequence are more inclined to issue a mortgage loan. The major advantage to a FHA home loan is the fact that credit criteria for a first-time borrower usually are not as strict as Conventional Loans sold to Fannie Mae (FNMA) or Freddie Mac (FHLMC). What this implies to you is the fact that an FHA mortgage loan can be simpler to obtain when compared to a regular loan.

Most people know that FHA (Federal Housing Administration) loans are a popular option for first time home buyers. While that is true most people do not realize that they may offer advantages to others as well. The FHA backed loans have morphed into a tool that can be used by investors, experienced home owners, and even those trying to repair their credit. Here are five things you probably don't know about FHA loans.

Things You need to know about FHA Loans in Upland

• Not Just For First Time Home Buyers
  

The original intent of an FHA loan was to make it easier for first time home buyers to purchase a house. However, that is no longer true. Today these loans are used as vehicles to get into homes with a government insured loan for a variety of reasons. The idea that you have to be a first time home buyer is a myth.

• Not Credit Score Driven

If you have a spotty credit history you may still qualify for an FHA loan. The lending requirements are not as strict since your loan will be insured by the government. 

• Can Include the Cost of Home Repairs

If you are purchasing a home that needs immediate repairs you may be able to have the cost included in your FHA loan. Also, if you already own a home that needs repairs you may be able to refinance through an FHA loan and include these costs.

• May Require Only a 3.5% Down Payment

While traditional lending requirements have tightened in recent months you can still get an FHA mortgage for as little as 3.5% down. For potential home buyers with limited capital this can be a great option. 

• Loan Limits Change Annually Based On Your City

Most people think FHA loans have a low ceiling enabling borrowers to only purchase smaller and older homes. This is not necessarily true. The loan limits are adjusted annually and vary from city to city based on the median property value. 

If you need help in getting qualified for your FHA Home Loan in Upland, California please Call Nathan Rufty at 909-503-5600.