FHA Home Loan Options In Orange County

Frequently Asked Questions About FHA Loans

FHA Loan VS. Conventional

Both conventional and FHA loans are available to first-time homebuyers. There is a common misconception that conventional loans are only offered to those who have purchased homes before, but they’re available to everybody. With that said, FHA loans in Orange county are incredibly appealing to first-time homebuyers because of the government-backed insurance and lower requirements for approval. Here are some of the key differences to keep in mind:

FHA Conventional
Insured by Federal Housing Administration Not insured by a Government entity
Require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher May allow as low as a 3% down payment, but only for applicants with credit scores in the high 600s+, with significant income and savings
Debt-to-income (DTI) ratio must be 50% or less to qualify DTIs of 43% or less in most approval cases
Mortgage insurance is required regardless of down payment amount Borrowers are required to pay for mortgage insurance if their down payment is less than 20%

How to Get an FHA Home Loan in Orange County

We’ll need to take a comprehensive look at your financial situation to determine what type of loans and terms you’re eligible for so you can purchase your new home in Orange County. Our team at  will ask you to provide us with your proof of income and other financial documents. You will need to be able to put down at least 3.5% towards the home, have a minimum credit score of 580, and a DTI of less than 50% percent.

Is down payment assistance available for an FHA Mortgage?

Yes, down payment assistance is available for an FHA mortgage. The Federal Housing Administration (FHA) does not provide the assistance directly, but there are several programs offered by state and local governments, as well as non-profit organizations, that provide down payment assistance for FHA borrowers. Some of these programs offer grants or interest-free loans to cover the down payment, while others may provide a second mortgage to be used for the down payment. It's important to note that these programs have different eligibility requirements and conditions, such as income limits, credit score requirements, and residency restrictions, among others. To find out if you're eligible for down payment assistance, contact us today!

How do I get pre-approved for an FHA loan?

According to the FHA’s    pre-qualification requirements, you’ll need to demonstrate: 


  • Consistent employment history with at least two years of steady employment from the same employer. 
  • Stable income (proof that you can make payments)
  • Solid credit over the last two to three years
  • No bankruptcy reports on record within the last two years
  • No foreclosures within last three years
  • And more

 

Want help getting pre-approved for an FHA loan so you can get started on scouring  for a new home?


Contact us today  to get started. 

What are the options to refinance an FHA mortgage?

There are several options to refinance an FHA mortgage, including:

  1. FHA Streamline Refinance: This is a quick and easy refinance option for FHA borrowers that requires minimal documentation and underwriting. The FHA Streamline Refinance does not require an appraisal, and the credit and income requirements are usually less strict than a traditional refinance.
  2. FHA Cash-Out Refinance: This option allows FHA borrowers to refinance their mortgage and take out cash from their equity. The cash can be used for any purpose, such as home improvements, debt consolidation, or other expenses.
  3. Conventional Refinance: If you have a solid credit score and a low debt-to-income ratio, you may be eligible for a conventional refinance, which will help you remove your mortgage insurance and lower your rate and payment.



Want to apply for an FHA loan? Get in touch with our team of -based FHA loan experts to see what next steps you need to take to qualify for your new home loan.

Get a Orange County FHA Mortgage rate quote:

Get the mortgage you deserve today.

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