Are FHA Loans an Option for California Home buyers?
As we ended February the Wall Street Journal proclaimed that banks were at least revving up lending, meaning the purse strings were about to loosen and more borrowers were going to be eligible for home loans. As a borrower you have to ask, is this for the local, regional or national lenders? What is an FHA loan? How do I get one?
An FHA Loan is actually a loan that originated by a lender other than the FHA, however it is guaranteed by the FHA. The FHA shares a portion of the risk of the loan which allows the lender to loosen credit requirements. As with anything their are positive aspects of the program and negative aspects which we will let the pros cover in greater detail.
The current state of the California housing market can use any crutch we can find to place homes into escrow and get them sold to viable home owners. With the number of borrowers in California who carry strong financials yet have a severely damaging credit event in the recent past, these programs can be a huge help. The FHA lending program does carry higher premium on mortgage insurance, with the median house price in California requiring a $100,000+ down payment in may areas to comply with dodging mortgage insurance this can be an issues. At the end of the day, as long as the lending practices are sound Reliant Escrow is all in favor of any boost to the California Real Estate market so we can open additional escrows! Let us know if we can help you close your escrow. Contact us at email@example.com