What Is A FHA Loan
An FHA loan, insured by the Federal Housing Administration (FHA), is a popular mortgage option, especially for first-time homebuyers in California. Backed by the U.S. Department of Housing and Urban Development (HUD), FHA loans are designed to help people with lower credit scores and limited savings achieve homeownership.
Flexible Credit Score Requirements:
FHA loans are accessible to borrowers with credit scores as low as 500, requiring a 10% down payment. For those with a credit score of 580 or higher, the down payment can be as low as 3.5%.
Low Down Payment Options:
FHA loans allow borrowers to use down payment funds from various sources, such as family gifts, employers, or nonprofit organizations, making it easier to secure a home.
Higher Debt-to-Income Ratios:
FHA loans in California allow a higher debt-to-income (DTI) ratio—up to 57%—making them more accessible to borrowers who might not qualify for conventional loans.
Mortgage Insurance Premiums (MIP):
FHA loans require both an upfront mortgage insurance premium and monthly MIP payments. These protect the lender in case of default, but they make FHA loans affordable for many buyers.
Loan Terms and Options:
FHA loans in California offer flexibility, with terms up to 30 years and both fixed and adjustable-rate options available. This makes them suitable for various financial situations and home-buying goals.
Eligible Property Types:
FHA loans can be used to purchase or refinance different types of properties, including single-family homes, multifamily properties, condominiums, and select manufactured homes.
Streamlined Refinancing:
FHA borrowers can take advantage of streamlined refinancing options. This process may not require a credit check or home appraisal, making it quicker and more efficient.
Benefits of A FHA Loan
If you’re exploring affordable home financing options, FHA loans in California offer flexible requirements and lower barriers to entry compared to conventional loans. Whether you're a first-time homebuyer or looking to refinance, FHA loans can make your dream of homeownership a reality.
Alvin Newton
Residential Mortgage Loan Officer
NMLS #2222360 DRE #01858045
619-987-6987 Alvin@AlvinNewton.com
-
Alvin Newton: NMLS #2222360 DRE #01858045
Moose Mau: NMLS #411962 DRE #02084078
C2 Financial Corportation: NMLS #135622 DRE #01821025
Visit the C2 Financial Corporation website
Visit the NMLS Consumer Access website
This licensee is performing acts for which a real estate license mortgage broker license, mortgage lender license, mortgage lending license, mortgage loan originator license, mortgage license is required. C2 Financial Corporation is licensed by the California Department of Real Estate, Broker # 01821025, Alabama State Banking Department, Broker # 23303, Arizona Department of Financial Institutions, Broker # 919209, Arkansas Securities Department, ASD# 129945, Colorado Division of Real Estate, NMLS# 135622, Florida Office of Financial Regulations, OFR# MBR3519, Hawaii Department of Financial Institutions, Broker# HI-135622, Idaho Department of Finance, Broker license # MBL-9475 Michigan Department of Insurance and Financial Services, DIFS# FL0023565, SR0023566, Mississippi Department of Banking and Consumer Finance, New Mexico Financial Institutions Division, Oklahoma Department of Consumer Credit, license# MB014489, Oregon Division of Finance, DFR# ML-4917, South Carolina Department of Consumer Affairs; NMLS# 135622.
Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by borrower. Loan is only approved when lender has issued approval in writing and is subject to the Lender conditions. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender. The services referred to herein are not available to persons located outside the state of AL, AR, AZ, CA, CO, FL, HI, ID, MI, MS, NM, OK, OR, SC.
C2 Financial Corporation is approved to originate VA and FHA loans, and has the ability to broker such loans to VA and FHA approved lenders. C2 Financial Corporation is not acting on behalf of or at the direction of HUD/FHA or the VA.