FHA Loans

FHA Mortgage Broker in Los Angeles

If you want to buy a home but do not have 20% to put down, or your credit history is not perfect, then an FHA home loan is for you. This is the most accessible type of loan that you can qualify for, which combines a low down payment and relatively easy qualifying standards. FHA mortgage loans are perfect for those who are not approved with conventional lenders, and this type of loan has a few appealing features.

What is an FHA Loan?

FHA stands for the Federal Housing Administration. This is a Government agency that was created in 1934 to increase homeownership in the USA. FHA doesnot issue the loans; instead, it provides security and mortgage insurance to lenders: if you are not able to repay your loan, the FHA will do it.

Because of the governmental guarantee lenders are more willing to make rather large mortgage loans in cases when otherwise they would be unwilling to do so, for example to buyers with a bad credit history. The Federal Housing Administration is the largest insurer of mortgages globally. Today, one out of two loans in the US is an FHA loan.

Benefits of FHA Mortgage Loans

Looking to purchase a house in Los Angeles, or anywhere in California but can not apply for a traditional mortgage? FHA loan is an excellent option. The guidelines and requirements for an FHA mortgage are much more lenient: low FICO score and small down payment are OK.

Perfect for the First Time Home Buyers

This is an ideal mortgage loan for first time home buyers. These loans are popular among first-time buyers because of low down payments and flexible qualifying guidelines.

Finances for Home Repairs

Need some extra funds to make repairs in the house? The FHA has a special loan for that. It is not based on the current value of the home but instead on the projected one.

Low Interest Rates

FHA loans have lower interest rates. This happens because the lender takes less risk.

Gift Fund as a Downpayment

You can use a gift fund as a 100% of a down payment on your house (for primary residences only).