California Mortgage Loans with FHA

California borrowers have been receiving help through FHA since 1934 and the current mortgage rates have never been lower for home buying or refinancing. The Federal Housing Administration (FHA) insures the loans allowing lenders to offer better deals to borrowers. Even with all the noise about the subprime market, California FHA home loans are still available and an excellent opportunity for borrowers looking to get into a home.

Get Professional Quotes from California FHA Lenders with Great Rates

Great Reasons to look at FHA Loans

FHA Loans require low down payments. The closing costs are low and there is easy credit qualification. FHA loans do not have a credit score requirement, so bad credit may not be a problem. FHA loans are no longer a cumbersome process either. Now, it takes 30% less time to secure an FHA home loan, said Robert M. Couch, general counsel for the U.S. Department of Housing and Urban Development.

* 3.5% Down Payment
* Low Rates
* No Pre-Pay
* Poor Credit OK
* First Time Home Buyers OK

FHA California Loan Limits

Few home buyers in the state have been able to use FHA financing because FHA loan limits, which range from $200,000 to over $362,000 in California, are not high enough to meet the cost of most homes in the state. In 1999, FHA insured 131,000 loans in California; in 2006, FHA insured only 2,500.

FHA is now offering options for refinancing adjustable mortgages as well. Whether you are looking at Miami home refinancing or refinancing in Lee County where many ARMs are about to reset, FHA may be able to help you get a fixed mortgage rates if your loan is within the FHA limits. At one time, borrowers could get a 95% cash out with FHA, but today people must have at least 15% available in home equity to qualify for a cash back loan. If you are not familiar with FHA options talk to a mortgage broker and find out more.

"For the past several months, we have been confronted with a sobering, steady series of stories: inappropriate sub-prime loans, predatory lending, staggering rates of foreclosure, and higher mortgage rates. We must give Californians the highest possible confidence in the housing purchasing process and make homeownership available to everyone who wants a home and can safely afford one," Jackson told more than 150 representatives from the housing industry, including mortgage brokers, bankers, housing counselors and consumer advocates.