What is an FHA Loan? TDR Mortgage in Southern California

What is an FHA Loan?

  • By Teresa Tims
  • July 21, 2019
  • 0 Comments

TDR Mortgage loves FHA loans!!!!

 

The FHA Loan is one of our bread and butter products.  TDR Mortgage in Southern California says it’s great for people looking to purchase that have less than perfect credit (580 score but for the best rate and term let us help you raise it to 620) and don’t have all the money for the down payment and closing cost.

FHA is Most Generous with Debt Ratios!

FHA is a program through the federal government. It allows home buyers to put down as little as 3.5% on a home. FHA has a feature where we can even cover all the closing costs.  If you can come up with 3.5% down, You can be a homeowner in Southern California in no time. One of the great things about FHA is it allows us to qualify you with up to 57% of your income. That can cover your house payment along with your bills.

For example:

FHA Loan

If you make 6,000, You can buy a home with a maximum payment of 2820.00 and have around 600 in other monthly Debt.

VS

Conventional Loan

Maximum payment of about 2700.00 (45 Max Debt Ratio) but virtually no other debt but maybe 200-250 a month, (47/48 Debt ratio used, max is 49.99 but most Conventional loans won’t approve that debt ratio) and most conventional product doesn’t allow us to pay closing cost so you would need 5% down (3% Conv avail but buyer program not available to everyone).

Often times FHA Loan will let us go 50-100k higher in Sales Price.  If you qualify for a 325K home conventional then you would probably qualify for a 390-400k home with FHA.

How we pay closing costs

You see with FHA loans we can raise the rate to cover closing costs, there is money in the spread for example 4% you get no lender credit but at 4.5% maybe you could get 1.5% for closing cost credit or 4.75% you might could get 2.25% closing cost credit.  Conventional home loans just don’t have a spread in the rate for us Mortgage Brokers to do that.

 

What is an FHA Loan? Home Loans | Rancho Cucamonga | Ontario | Upland | Fontana

 

Call TDR Mortgage to Compare mortgage rates on a home refinance, VA loans, FHA loans, Jumbo loans, conventional loans, http://www.TheSoCalLoanPro.com reverse loans, first time home loans, 1st time buyer loans, USDA loans and CALHFA loans.

We serve Southern California including Upland, Rancho Cucamonga, Fontana, Rialto, Chino, Chino Hills, Mira Loma, Eastvale, Ontario, La Verne, Claremont, Montclair, Pomona, Riverside, Corona, Glendora, San Dimas, Los Angeles, Orange County, Coachella Valley, the High Desert and San Bernardino.

TDR Mortgage company is a trusted provider of FHA Loan, Home Loan mortgages and home refinance. Call us 909-920-3500.

About Author: Teresa Tims

Teresa Tims is President of TDR Mortgage in Charming Downtown Upland CA. She prides herself in offering quality home loan products, competitive pricing and knowledgeable assistance when helping her clients select a home loan. Teresa is a life-long resident of the Inland Empire. Read More