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FHA Loans in Southern California

Orange County based Summit Lending’s team of top reviewed mortgage brokers specialize in helping California homeowners and home buyers to obtain FHA loans. FHA loans are also known as government loans, because they are those that are issued by federally qualified lenders, and are insured by the U.S. Federal Housing Authority.

For many first-time home buyers, and current homeowners throughout Southern California, an FHA loan is the perfect purchase loan, or provides the best opportunity to refinance your current mortgage into a better interest rate.

FHA Loans in Southern California:

  • Typically come with low down payment requirements
  • Offer flexibility with credit scores
  • Available with low interest rates

As a direct mortgage lender, Orange County based Summit Lending is able to underwrite and fund homebuyer and refinance loans directly, which enables us to provide you with approval for your FHA loan very quickly.

What is an FHA Loan?

FHA loans are government backed loans. They are insured by the Federal Housing Administration, hence the acronym FHA. FHA loans are only available through FHA approved lenders, like Summit Lending in Huntington Beach, CA. These mortgage loans are particularly popular with first time home buyers in Southern California, as the requirements for loan approval are not as strict as other types of loans. FHA loans are also often great loans for Southern Californians who have less than perfect credit, and/or don’t have a large down payment.

Summit Lending mortgage brokers are happy to talk with you about the benefits of an FHA loan in Southern California. Also referred to as “government loans,” FHA loans provide the perfect loan to allow SoCal borrowers to gain a foothold in the competitive Southern California real estate market. FHA loans are available for purchases or for refinances.

What are FHA loan requirements?

FHA loan requirements include the following:

  • Minimum down payment of 3.5% (with credit score of at least 580)
  • Minimum FICO score of 500 (with 10% down payment)
  • Ability to show stable employment and income-for two or more years
  • FHA loans must be used for your primary residency, not for a second, vacation, or investment property
  • Your debt ratio must not exceed 40% of gross monthly income (excluding your mortgage)
  • Your debt ration must not exceed 50% of gross monthly incoming (including your mortgage)
  • If you have a bankruptcy, it must be at least two years old.
  • If you have a foreclosure, it must be at least three years old.

How Much Down on an FHA loan?

FHA loans can be perfect for Southern Californians who do not have a large down payment. In fact, down payments for FHA loans may be as little as 3.5%. In addition, FHA loans allow for the down payment to come from a family gift, or from a down payment assistance program, or a government grant. Remember, as with all loans for SoCal homes, there are certain credit scores and income requirements that must be met and must be verifiable. FHA loans also require that you pay mortgage insurance premiums upfront and maintain private mortgage insurance if you put less than 20% down on the purchase.

What Credit Score Do I Need for an FHA Loan?

Every borrower is evaluated for their ability to repay their loan. So, your credit score alone isn’t the only criteria used by lenders to determine if they will approve you for a loan. However, there are some minimum credit requirements that do need to be met in order to qualify for an FHA loan. The minimum credit score for an FHA loan is 500, with 10% down. To secure the lowest down payment of 3.5%, credit scores need to be at least 580.

What is the maximum loan amount for FHA?

The FHA loan limits are specific to your region. Current FHA loan limits in Southern California are:

Los Angeles County: $726,525
Orange County: $726,525
Riverside County: $431,250
San Bernardino County: $431,250
San Diego County: $690,000
Ventura County: $713,000

As an FHA approved lender, Summit Lending in Huntington Beach has helped thousands of home buyers to obtain FHA mortgages. Contact our top rated Huntington Beach mortgage brokers at Summit Lending online or by calling 888-451-9006.

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