If you’re starting to look for a house, then you know the importance of getting the right type of mortgage loan.
While I have mentioned all the different types of loans that you can get on my blog, you may still need some help deciding which type of mortgage loan is right for you.
Let’s start talking about the FHA mortgage loan.
Here's a quick rundown of our list:
- San Diego CA FHA Mortgage Loan Q & A
- Can I get an FHA loan for a secondary residence?
- What kind of credit score do I have to have for an FHA loan?
- How long do I have to pay mortgage insurance for?
- What is the point of mortgage insurance?
- Why are there two forms of mortgage insurance for FHA loans?
- Why are FHA loans better than conventional loans?
- Do I need to be a first time home buyer for this loan?
- Do FHA loans come as fixed rate or flexible?
- What kind of term lengths do FHA loans have?
- Why are there so many requirements for the home as well as for me?
- Will this loan really cover the price of a home here? The houses here are more expensive than other places.
- What are there different loan limits for different styles of homes?
- Where can I get an FHA loan?
San Diego CA FHA Mortgage Loan Q & A
If you’re looking in an FHA loan, then these questions might have come up in your search.
If you don’t see your specific question here, then take a look at our guide to FHA mortgage loans to find your answers.
Q: Can I get an FHA loan for a secondary residence?
No. FHA loans are only available for primary residences.
If you are looking to get a secondary residence or purchase a property for rental purposes, then you will have to find another kind of loan.
Q: What kind of credit score do I have to have for an FHA loan?
You can have 500 or above to get an FHA loan.
If you have a credit score of 580 or higher, then you are eligible to only pay 3.5% as a down payment and get maximum funding.
If your credit score is between 500 and 579, then you will have to pay a 10% down payment.
Blog Post Interrupt – How to Buy a House for Cash
Now Back to the Blog Post
Q: How long do I have to pay mortgage insurance for?
Regardless of the term set up for your mortgage, if you have an LTV ratio of less than 90% you will only pay MIP for 11 years.
If your LTV ratio is 90% or higher, then you will have to pay MIP for the entire term of your mortgage.
Q: What is the point of mortgage insurance?
Mortgage insurance will ensure for the lender that regardless of your ability to pay that month, they will get paid.
It is not a protection for you, though.
If you fall behind on payments, then your credit score can dip and you might be in danger of foreclosure.
Q: Why are there two forms of mortgage insurance for FHA loans?
Because FHA loans are backed by the government, they have to be sure that they’re getting back all the money that they are putting into it.
Since these loans are given out to people that would have been denied a loan elsewhere, they need to make sure that everything is covered.
By having an upfront mortgage payment as well as monthly payments, they are doubly sure that they are going to get paid back.
It might seem like a little overkill, but they have to cover all their bases.
Q: Why are FHA loans better than conventional loans?
FHA loans are backed by the federal government and offer lower down payments than conventional loans.
These loans are more accessible and can help people get into housing that they need.
Whether a conventional loan is better for you is up to your own discretion.
Q: Do I need to be a first time home buyer for this loan?
You do not need to be a first time home buyer.
However, if you are a first time home buyer, then you might find that this loan is better for you if you don’t have tons of money to put down on the house immediately.
Q: Do FHA loans come as fixed rate or flexible?
As with conventional loans, FHA loans come in both flexible and fixed rate forms.
Q: What kind of term lengths do FHA loans have?
There are options both under and over 15 years.
In comparison to conventional loans, there are fewer options for term lengths; however, there are still options that are available to you.
Q: Why are there so many requirements for the home as well as for me?
While these loans are more accessible, the government has to ensure that they’re making smart financial decisions.
Those that just got out of foreclosure or dealt with bankruptcy will likely not even have the right kind of financial situation to make sure that they can pay their payments on time.
Q: Will this loan really cover the price of a home here? The houses here are more expensive than other places.
The FHA loan is constantly updated to cover the price of homes.
In California, the loan limits are higher in certain counties because of the price of homes.
From 2016 to 2019, the FHA loans made a large jump to help deal with the rising costs of homes everywhere.
No matter where you are looking, the FHA loan will cover the cost of the home that you’re looking at.
Q: What are there different loan limits for different styles of homes?
FHA loans have loan limits for single unit homes, duplexes, triplexes, and fourplexes.
The varying amounts reflect the size of the homes that they are allowing you to buy.
Those that are interested in getting a home that allows them to rent out space or two or three can use the potential rental income to help qualify for the loan that they would need.
Q: Where can I get an FHA loan?
FHA loans are given by FHA-approved lenders.
Lucky for you, I can help you get started in the process.
If you’re looking to get an FHA loan and get a house in San Diego, just contact me and I’ll get you going in the right direction.
What do you think?
Leave a comment below - or, call/text me at (760) 297-4539
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