At CaliMortgageLoan.com we enjoy the process of helping people become first time home buyers. Quite often the loan product of choice for first time buyers is a FHA mortgage. There are several reasons that FHA home loan products are so well suited for first time home buyers; let’s consider some of these reasons:
Reason 1: Low down payment requirements
With an FHA Mortgage the minimum down payment to qualify for a purchase is 3.5% of the purchase price. Most other mortgage products require 20% down to qualify. According to the OC Register the median sales price of homes in Orange County was $428,000 which means to qualify for a conventional mortgage one would have to pay $85,600 as a down payment. With an FHA mortgage the prospective home buyer would only have to put down $14,980. That’s over $70,000 that you could use for savings, home improvements, investments, etc.
Reason 2: Low Fixed interest rates
As of Today 30 year fixed rates for FHA mortgages are between 4.875% and 5.250 depending on credit. That’s historically low! In real world terms that a payment of $529.21 to $552.20 for every $100,000 financed and that payment would be fixed for 30 years!
Reason 3: Easy credit qualification
If you have a FICO score of above 640 and you have no late mortgage payments (30 day or more) within the last 12 months in most cases you’re approved! In some cases we can even work with FICO scores below 640 on a case by case basis.
If you want see if you qualify click here for a FREE MORTGAGE QUOTE!
Reason 4: Quick closings!
At CaliMortgageLoan.com we work exclusively with lenders that we have verified are closing FHA, Conventional and Jumbo purchases and refinances in 30 days or less. What does that mean for you? Firstly, it saves you the frustration of having to wait to close on the home of your dreams. Also with some of the better deals in the housing market there are substantial penalties written in to purchase contracts if you are unable to close on time. The very worst scenario is that your seller terminates your purchase contract because you missed your closing date. Not only do you lose your earnest money, but you also lose out on your dream house.
If your broker or lender is taking more than 30 days to close your FHA loan then you are with the wrong lender. Mortgages are all we do and we’re very good at our jobs. Using a National or Local traditional brick and mortar bank that also offers mortgages might not be the best idea either. These banks that have to worry about ‘bank issues’ such as checking/savings/money-market/brokerage account balances, liquidity levels, capital ratio’s etc all of which has nothing to do with your particular loan. That is why you might notice that certain banks have mortgage rates that fluctuate depending on what time of the month it is. Those banks will raise their rates to slow down loan volume so that their bank ratios are maintained. This is not something you have to worry about with us. We work exclusively with mortgage banks that offer better rates that ‘traditional’ banks. It is key to work with a specialist that is exclusively a mortgage bank – with our lenders and brokers MORTGAGES ARE ALL WE DO.
If you want to find out if you qualify for a FHA Mortgage please click here to pre-qualify or call CaliMortgageLoan.com at 877-FIXED-30 (349-3330) to apply over the phone.
