The two types of loans offered by a local mortgage lenders are conventional loans and FHA Home Loans.
We are going to be discussing FHA insured loans and some of the changes the Federal housing finance agency has put into place for local lender financing. As a local Santa Rosa mortgage lender, I can offer you an FHA insured loan to purchase or refinance a home. Some facts about FHA loans; the typical housing and debt to income ratios are 31/43. This means as a borrower your housing payment cannot exceed 31% of your gross monthly income. The 43 figure represents the total amount of debt that you have in addition to your housing payment cannot be more than 43% of your gross monthly income. Visit my previous entry here https://sonomacountymortgages.com/2010/11/07/getsonomacountymortgage/ one of the benefits of being a local Santa Rosa mortgage lender is that I can sit down and explain these numbers with you in person.
FHA Home Loans allow you to have a non-occupant co-borrower to help you qualify for the mortgage payment. FHA Home Loans will lend up to 96.5% of the value of your home if you are purchasing a home or refinancing your current home mortgage. If you are refinancing mortgage and are paying off debt or receiving cash out the maximum loan to value will be 85%. In order to take out an FHA insured mortgage you must also have 640 credit score or better.
Because you are receiving an FHA Home Loan insured by the federal government you will have to pay mortgage insurance both upfront and a monthly basis.
The calculations on the mortgage insurance are as follows 1% of the loan amount and .90% on a monthly basis. You also must have no mortgage lates or rental lates in the last 12 months. Depending on qualifying ability going through a local Santa Rosa mortgage lender the qualifying ratios can be expanded to 36/50. In addition the down payment needed is 3.5%. These down payment monies can also come in the form of a gift. A gift must be from a blood relative and the money needs to be sourced with bank statements. Presently, interest rates on FHA insured loans are in the low 4’s. Get qualified for an FHA Sonoma County Mortgage Today, no obligation prequalification.
Share:
RELATED MORTGAGE ADVICE FROM SCOTT SHELDON
Car Payments and Home Buying Power: How $700/Month Can Cost You $100,000
How a Car Payment Could Cost You $100,000 in Home Buying Power When you’re house…
Down Payment Assistance Programs in California: What You Need to Know in 2025
What Down Payment Assistance Programs Are Available—and Do I Qualify? If you’re trying to buy…
Non-QM Loans Explained: Flexible Mortgage Options for Unique Borrowers!
Not every borrower fits neatly into the traditional mortgage box—and that’s okay. Whether you’re self-employed,…
Why “Cheaper” Isn’t Always Better: The Real Story Behind Mortgage Pricing and Underwriting
Let’s get real for a second: mortgage pricing isn’t as wide open as most people…
View More from The Mortgage Files:
7 Comments
begin your mortgage journey with sonoma county mortgages
Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!
[…] Understanding Local FHA Loans […]
[…] Because of the Sonoma County mortgage market and the overall tightening of lending due to an abundance of risk in the marketplace there are a few small items you should be aware of when making offers. If the house you are making an offer on has been owned less than 91 days by the seller and you are using an FHA insured Sonoma County Mortgage Loan to purchase the property, know that you will either have to write a longer purchase contract with your realtor or wait until the 91 days is up. This is a federal requirement on all Sonoma County FHA insured mortgage loans. […]
[…] in the $250,000-$300,000 price range, a 28% tax bracket for the borrower, and a 4.75 30 year fixed FHA insured […]
[…] mortgages are FHA loans. Lots of folks seeking preapprovals to purchase a home get FHA loans. FHA loans unlike conventional loans always contain two forms of mortgage insurance. The first mortgage […]
[…] days or less, and is Full Eagle Direct Endorsement Underwriter for HUD. Feel free to give me a call Scott Sheldon, FHA Lender 707 217-4000. Cancel […]
[…] challenge for home buyers seeking mortgage home loans in Sonoma County California. Looking at FHA insured loans for a moment, the property must be in a safe condition and the property also must be […]
[…] is helping them get back in shape purchase a home in two to three years. Lots of people obtained purchase mortgage loans and bought homes in 2004-2007. Many people have lost their homes and their credit scores as a […]