Los Angeles FHA Loans

If you are planning to relocate to Los Angeles, there has never been a better time than now to apply for an FHA loan. The Federal Housing Administration (FHA) is a part of the US Department of Housing and Urban Development (HUD). Both the FHA and HUD have designed programs to help Americans afford new homes and avoid going into foreclosure on their current properties.

Advantages of FHA Loans

The first big advantage that FHA loans have over conventional loans is the low down payment required. With conventional loans you can expect to pay as much as 20% for a down payment, which for a new home in LA can add up very fast. With an FHA loan, you are only required to pay for 3.5% on a down payment. To make the overall costs even smaller, the FHA does not require you to pay private mortgage insurance (PMI) and you will get to take advantage of low interest rates. The other advantages of LA FHA loans include streamline refinancing, easy approval and flexible repayment plans.

Eligible Houses

For a standard, straightforward FHA loan, one to four-unit properties that need no new repairs are eligible for financing. There is also an Energy Efficiency Mortgage (EEM) for people who want to make energy efficient upgrades to their property. The EEM can be used for improvements such as installing solar water heaters and buying low-flush toilets. For houses that need a lot of rehabilitation there is the 203(k) mortgage which rolls the cost of acquisition, repairs and final value of the home into one loan.

How to Apply

In order to apply for an FHA loan, you will first need to find a lender who participates in the FHA home loan program. You have the option of using a bank, savings and loans association or mortgage company for your Los Angeles FHA loan. Before you start researching lenders, it’s a good idea to get pre-approved for the loan first. This way you will know if you meet the FHA’s requirements and will have an idea of how big of a loan you’ll be able to qualify for.

We have a team of FHA specialists who are ready to help you get started today. Fill out our online form and we’ll have you pre-qualified instantly for free!

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