The Good and The Bad – A look at FHA Loans in 2017 | |San Diego Home Loans- Laura Borja


What is an FHA loan? That is what we’re going to be taking a look at in this week’s the Mortgage Minute. Music. The Mortgage Minute presented by me, Laura Borja Your San Diego home loan expert. What is an FHA loan? An FHA loan is a loan that is insured by HUD or the Department of Housing and Urban Development. It is meant for the purchase of owner-occupied properties, primary residence is only, however you are able to purchase a multi-unit property let’s say a duplex. Where you would live on one side and rent at the other. The underwriting guidelines of an FHA loan tend to be much more relaxed as compared to conventional financing. Credit score requirements are not astringent and debt to income ratio can be a little higher than compared to a conventional loan. They do requrie a minimum of 3.5% down both upfront mortgage insurance as well as monthly mortgage insurance And speaking of monthly mortgage insurance that is one of the downsides of the current guidelines for FHA Which say that unless you put at least 10% down then you are going to be stuck with that monthly mortgage insurance for the entire life of the loan. There is no possibility of getting it removed regardless of the equity in your property. The other slight disadvantage is that if you are trying to purchase a condominium, the condominium project must be on the FHA approved list. That list is getting smaller and smaller. Many developers don’t go through the process of getting the project approved so that means that if the home, the condo you’re trying to purchase was not approved by the developer or Builder, the only way to finance a using FHA financing would be for you to get the entire project approved which is can be a very lengthy and costly process So there you have it. A quick look at FHA Loans. If you have any questions about that or any other by all means reach out to me. Email me Give me a call send me a text or connect me through social media thanks for watching this week’s the mortgage don’t forget to subscribe and I’ll see you next week

Paul Whisler

6 Comments

  1. Hola, le escribo en español ya que vi que usted habla español, estoy tratando de comprar una casa en NJ y no se cual es la diferencia entre este programa y Naca?
    Gracias de antemano, buen día.

  2. I can’t remove pmi if I paid less than 10% down on my fha loan? Yikes! I keep getting these offer letters to remove pmi. Also I was told by my mortgage officer that we would be able to streamline refi to remove my non occupant co borrower but so far no luck. Any advice?

  3. Good Chanel and good information!What if I already purchase a home (florida)with a FHA loan and now I want to get a second property. Can I put my primary home in a LLC rent it out and get a FHA loan for my second home?

  4. I was offered a 5.2 rate on a fha loan as of July 8, 2018. Is that the going rate or should I shop around for a lower rate?

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