FHA (Federal Housing Administration) Loans

The FHA(Federal Housing Administration) Loan

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.FHA loans are an attractive option, especially for first-time homeowners:

  • Generally easier to qualify for than conventional loans.
  • Lower down payment requirements.
  • Cannot exceed statutory loan limits.

Loan Limits for San Diego County:

FHA  has announced that it is increasing  the maximum FHA loan amount effective Jan.1, 2018

The new details are as follows:

1.  The New Maximum FHA loan for a single family home or condo in San Diego is $649,750 
2.  Effective date January 1, 2018

Number of Units Maximum Loan San Diego High Balance Limits
1 $453,100 $649,750
2 $580,150 $831,800
3 $701,250 $1,005,450
4 $871,450 $1,249,550

FHA LOANS – Advantages

FHA loans have been helping people become homeowners since 1934.  The Federal Housing Administration (FHA) insures the loan so lenders can offer:

  1. Low down payment (3.5%).
  2.  Low interest rates.
  3. Easier credit and income qualifying.
  4. Allows buyers to purchase with low down payment and less than perfect credit and easier qualifying.
  5. Allows for borrowers to purchase when credit does not allow them to go Conventional.

Only requires a 2 year wait after a Bankruptcy and a 3 year wait after a Short Sale or Foreclosure.

FHA Loan Requirements:

  1. Owner occupied.  FHA does allow for a non-occupant co-borrower.
  2. 1.75% up-front charge by FHA that is added to the loan amount.
  3. .85% monthly mortgage insurance is charged monthly on loans with 3.5% down payment and .8% on loans with 5% or more down.
  4. Mortgage insurance stays on for the entire loan unless there is a 10% down payment.

 SAN DIEGO FUNDING HAS FULL FHA APPROVAL AND CAN CLOSE IN 3 TO 4 WEEKS.  ALL PROCESSING, UNDERWRITING AND FUNDING IS DONE IN OUR LOCAL LIBERTY STATION OFFICE.

San Diego Funding is centrally located in Point Loma, and works with clients across the county and state, including, but not limited to Eastlake, Chula Vista, Imperial Beach and La Mesa.