San Francisco FHA Loans

If you are planning to relocate to San Francisco, right now is a great time to apply for an FHA loan. The Federal Housing Administration (FHA) has been helping make homes affordable for over seventy years. Today, the program is still going strong with millions of American families taking advantage of the huge benefits of FHA loans. Here are a few commonly asked questions regarding FHA loans:

What are the benefits of an FHA loan?

The first major benefit of FHA loans is the low down payment feature. It is possible to qualify for up to 96.5% financing, making the down payment a low 3.5%. You also won’t have to pay private mortgage insurance (PMI) and will be offered really great interest rates. The other benefits include easy approval, streamline refinancing and flexible repayment plans.

What if I can’t afford even 3.5% for a down payment?

The FHA does not care where the money for the down payment comes from. This means you can have your friend, employer or charitable organization pay the upfront fees. Alternatively, you can apply for the American Dream Down payment Initiative (ADDI) which will cover your down payment for you.

Is the loan a gift?

No. While the loan extends some really great benefits to those who qualify, it is still a loan that will need to be paid back overtime.

Can I use the loan to rehabilitate a house?

Yes. If you have a house that needs major repairs done to it, you can apply for a 203(k) mortgage. The 203(k) rolls the cost of the acquisition, all repairs and final value of the property into one loan.

What lender can I use for the loan?

When deciding on a lender for your San Francisco FHA loan, you have the option of using a mortgage company, bank or savings and loans association. The only requirement is that the FHA approves the lending institution.

Who is eligible?

Anyone is allowed to apply for an FHA loan. Your approval will be based on financial information such as credit scores and bank balances. However, the standards are very lenient. Even if you have less than perfect credit, you might still qualify for an FHA mortgage.

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