When people qualify for government-insured FHA loans in California, it gives them the opportunity to buy homes with relatively small down payments. Unfortunately, persisting myths discourage many potential homeowners from applying…
- “You can’t qualify for any mortgage within seven years after bankruptcy.”
The truth is that Californians may be approved for FHA loans if they make payments on time after going bankrupt.
- “You need a credit score to apply.”
Actually, it’s possible to qualify for this kind of mortgage without a score. The same is true if your rating is 580 or higher.
- “You can only buy a single-family house with a Federal Housing Administration loan.”
In truth, it’s also feasible to use these mortgages for condos and homes that contain up to four families.
- “I can take out an FHA-insured mortgage with a 3 percent down payment.”
This myth stems from outdated facts. The minimum increased to 3.5 percent in 2009. It doesn’t seem like a major difference, but it matters.
- “You may only request an FHA mortgage if you haven’t bought a home before.”
The truth is that these loans benefit a wide range of homebuyers, including natural disaster victims and people who have declared bankruptcy.
- “You can only pay for the house with an FHA mortgage.”
Actually, you may also use it to fund a maximum of $25,000 in repairs and enhancements.
- “It only makes sense to get an FHA loan if your bank offers it.”
In fact, you can easily find and compare numerous lenders that supply this type of loan at different interest rates.
The reality is that FHA mortgages are both affordable and versatile. For the best rates available, please contact Capstone Direct for FHA loans in California.