Planning to purchase your first home in Los Angeles? You’ve made a wonderful choice. Here you have a chance to be part of a booming job market while enjoying the sunshine and the glamour of the Entertainment Capital of the World.
Buying your first home can be a complex process, and if you do not have perfect credit or a long credit history, a standard conventional loan may not be the most suitable choice. There is a loan product designed just for you, called an FHA loan. With an FHA loan, you can enjoy excellent benefits such as a low down payment and low interest rates.
FHA Loan Los Angeles Benefits
“FHA” is short for the Federal Housing Administration, the government body that insures FHA loans. FHA loans are tailored specifically to the needs of first time homebuyers.
Because they are insured, they reduce the risk to lenders, who in turn are willing to offer you favorable terms and low interest rates. Here are the advantages of an FHA loan:
- With an FHA loan, your down payment is just 3.5%.
- Your interest rate and closing costs will both be lower with an FHA loan than a conventional loan.
- You will find more loan opportunities available to you than you might otherwise, especially if your credit score is low.
- FHA loans are available not only for purchase, but also for construction or renovation. FHA reverse mortgages are available to seniors as well.
Do You Qualify for a Los Angeles, CA FHA Loan?
To be eligible for an FHA loan in Los Angeles, you need to meet the following requirements:
- If you are obtaining an FHA loan to purchase or build a home, you must be a first time homebuyer in Los Angeles.
- Your debt-to-income ratio should be 43% or lower, but this is not a rigid rule.
- Your FICO score must be 580 or above in order to qualify for an FHA loan with a 3.5% down payment. What if it is lower? You might still be eligible for an FHA loan, but your down payment will be higher.
- The property you are purchasing must also be eligible for the FHA loan.
Pacshores Can Help You Move into Your First Home Quickly and Affordably With a Los Angeles FHA Loan
How can you be sure you meet the requirements to qualify for an FHA loan, or that an FHA loan is the best choice? We have assisted many first time homebuyers throughout Los Angeles to assess their eligibility and apply for an FHA loan successfully. Give us a call at 310-478-5005. We can discuss your situation, answer any questions you have about FHA loans in Los Angeles or the home buying process, and help you apply for an FHA loan to purchase your first home.