FHA Home Mortgage Loans for California Homeowners

Fixed Rate Home Mortgages with Bad Credit OK

California homeowners are migrating towards FHA home refinance loans if they have less than perfect credit. California home refinance loans increase with FHA mortgage loans to $417,000 even for borrowers refinancing with less than perfect credit. Unfortunately, many California consumers have had to stick it out, trying to make the payments for their increasing adjustable rate mortgages when the loan amounts was greater than $362,000, but eased restrictions will benefit thousands of homeowners. There is talk that the Department of Housing and Urban Development will be increasing the loan limits soon which will benefit thousands of more homeowners. Payment history is more critical with FHA refinancing than credit scores are. If you had a solid home loan payment history, you are likely eligible for a California FHA mortgage. With rising home values and falling rates many people are choosing FHA for California home loans.


Breaking Mortgage News - FHA Loan Limits Increased Beyond $417,000
The new lending law raises loan limits for FHA home loans in every California county!
California Home Loans

The bill would loosen underwriting guidelines at the Federal Housing Administration in an effort to aid at least 200,000 borrowers who have fallen behind on their mortgage payments since their loan payment adjusted this year. FHA home loans in California have been the stable lending program for first time buyers for several decades.

"HUD's Federal Housing Administration can provide many homeowners with a fairer, more affordable, and more sustainable alternative to costly subprime loans," Department of Housing and Urban Development Alphonso Jackson said in a prepared statement.

This California FHA reform legislation would raise the existing loan restrictions from $362,000 to at least $417,000, but many believe increased loan exceptions will be coming soon for the high cost counties like, San Diego, Orange County, Los Angeles and San Francisco.

Decrease in FHA Home Loan Defaults Could Spur Housing Recovery in California

There is good news in the housing industry, especially in California where a decrease in the number of home loans that are in default has the possibility of actually spurring the overall recovery. With one of the largest economies in the world, it is crucial that mortgage lending in California get back on track. Fortunately, there is some good news and experts for see continued growth on the horizon. The fact that defaults have fallen on FHA home loans in California is a great sign in support of data suggesting the recovery is under way.

The median price for a home in California rose 4% during the third quarter compared to the prior quarter. Even more impressive is the fact that the price rose 26.3% from the third quarter of the previous year. What this means is that the average home price during the third quarter in 2012 was $285,000, and rose to $360,000 just one year later.

When it comes to lines of credit and home equity loans that are actually in default, borrowers with a median $64,000 credit line owed a median $5342. With FHA home loans in California seeing more timely payments and less defaults it is likely that more and more people will consider government insured financing for first time home buying.

Fewer homes in default is good news across the housing industry for a number of reasons. First of all, the more homes that go into foreclosure, the lower the median value of the average house is. For example, if there are a number of foreclosed homes in a particular neighborhood, the average value of the homes around it go down. This leads to individuals owing more money than their homes are worth, also known as being "underwater."

With the flood of defaulted home loans and foreclosed houses slowly declining, the values of homes across the state are back on the rise, although they are not necessarily at pre-crisis levels just yet. It is also important to keep in mind that different areas of the state are doing better than others. In regions of California where home values have remained consistently high, the effect of the housing crisis was not felt quite so strongly as in areas where home values were already at the lower end of the scale.

A recovery in the housing industry in the state of California is good news, not only for lenders, but for borrowers as well. With more individuals interested in purchasing homes, rates are competitive, allowing individuals to purchase the homes that they have always wanted without having to spend unnecessarily large amounts of money on high rates. Because the housing industry supports a number of other industries and has a profound effect on the economy as a whole, this is good news for every individual in California and the nation.

MSA Name

County Name

State

One-Family

Two-Family

Three-Family

Four-Family

SAN DIEGO-CARLSBAD-SAN MARCOS, CA

SAN DIEGO

CA

$697,500

$892,950

$1,079,350

$1,341,350

SALINAS , CA

MONTEREY

CA

$729,750

$934,200

$1,129,250

$1,403,400

BISHOP, CA

INYO

CA

$437,500

$560,050

$677,000

$841,350

SAN LUIS OBISPO-PASO ROBLES

SAN LUIS OBISPO

CA

$687,500

$880,100

$1,063,850

$1,322,150

SANTA BARBARA-SANTA MARIA

SANTA BARBARA

CA

$729,750

$934,200

$1,129,250

$1,403,400

NAPA , CA

NAPA

CA

$729,750

$934,200

$1,129,250

$1,403,400

RED BLUFF, CA

TEHAMA

CA

$312,500

$400,050

$483,550

$600,950

SANTA CRUZ-WATSONVILLE

SANTA CRUZ

CA

$729,750

$934,200

$1,129,250

$1,403,400

CHICO , CA

BUTTE

CA

$400,000

$512,050

$618,950

$769,250

FRESNO , CA

FRESNO

CA

$381,250

$488,050

$589,950

$733,150

LOS ANGELES-LONG BEACH-GLENDALE

LOS ANGELES

CA

$729,750

$934,200

$1,129,250

$1,403,400

SANTA ANA-ANAHEIM-IRVINE

ORANGE

CA

$729,750

$934,200

$1,129,250

$1,403,400

MERCED

MERCED

CA

$472,500

$604,900

$731,150

$908,650

OAKLAND-FREMONT-HAYWARD

ALAMEDA

CA

$729,750

$934,200

$1,129,250

$1,403,400

SAN FRANCISCO-SAN MATEO-REDWOOD CITY

SAN FRANCISCO

CA

$729,750

$934,200

$1,129,250

$1,403,400

REDDING

SHASTA

CA

$423,750

$542,450

$655,700

$814,900

STOCKTON

SAN JOAQUIN

CA

$488,750

$625,700

$756,300

$939,900

EL CENTRO

IMPERIAL

CA

$325,000

$416,050

$502,900

$625,000

 

California FHA Lender
Central Coast Seniors are taking advantage of the home equity pay check that is available with reverse loans as one of the California FHA loan products.
The Federal Housing Administration (FHA) was created in 1934 to meet the needs of citizens otherwise underserved by the private sector, to stabilize local and regional housing markets and to support the national economy. For those homeowners who have their primary residence in California who are out to get a mortgage loan but have poor credit, cannot meet the 10-20 percent down payment requirement or both, and are looking for loans that are no larger than the program's loan size limit, then the California FHA mortgage program is the best option for you.

FHA insures loans for first time home buyers and current home owners buy a home with less than 3% down or FHA home mortgage refinance up to 96.5% of the homes' value.

The current basic standard mortgage limits for FHA home loans are $200,160.00 for a single-family home, $256,248.00 for a two-family home, $309,744.00 for a three-family home and $384,936.00 for a four-family home. In high-cost areas like San Diego, Orange County and Los Angeles, these amounts probably seem insignificant. But, the government is working on a FHA Modernization Act to raise the loan limits to more reflect the current Fannie Mae and Freddie Mac limits of $417,000 and otherwise modernize outdated business practices and program requirements.

The FHA does not lend money, but rather serves as insurance to lenders, so you can obtain a loan to purchase a home, one for renovation or cash out for fixed rate refinancing. With rates as low as 3% of the purchase price of the home, and some programs that require no money down, the benefits of an FHA loan outweigh its costs. Plus, because the FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements, so it's easier for you to qualify.

According to Mortgage Strategist, more than $2 trillion of U.S. mortgage debt, or about a quarter of all mortgage loans outstanding, is due for interest rate resets in 2012 and 2013. Through FHA, you can cash out and get a fixed rate mortgage. So, now may be the time to consider refinancing your ARM (adjustable rate mortgage). And, FHA fixed rate refinancing may not be as expensive as you think. Compare the cost of FHA over the life of your loan and how much it costs monthly for subprime and conventional loans. You'll find that FHA financing may actually be a good deal. - Article written by Maria Ny for Nationwide Mortgage Loans.

Bad Credit is Allowed with Many Nationwide Loan Programs!

FHA does not have specific credit score requirements. So, even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for an FHA mortgage than a conventional loan. They only require that a bankruptcy is at least two years old, with good credit since, and that foreclosures must be at least three years old, with good credit since. The term "good credit since" means that you must have a good payment history on your bills for the past 12 to 24 months.

 


Free Finance Guides & Helpful Consumer Reports

Read more about getting a FHA refinance in California in these free guides below.

Understanding Credit Scores
ARM Rate Mortgage- Guide
Consumer Guide -Rate Locks
More Related California Pages:
California Mortgage Rates | California Home Equity Rates | California Second Mortgage | California Debt Consolidation | Los Angeles Home Mortgage Rates Drop | Orange County Mortgage Rate Updates | Santa Cruz Home Loans | San Bernardino Home Loans | Santa Clara Home Loans | Ventura Home Loans | Carlsbad Home Equity Rates | La Jolla Home Equity Rates | Mission Viejo Home Equity Loans | San Clemente Home Equity Rates | Laguna Niguel Mortgage Rates | FHA Home Loans Replace Subprime Mortgages | Foreclosures Rise with Adjustable Rates | Orange County Borrowers Seek Fixed Rates | California Homeowners seek Jumbo Refinancing | California Veteran Home Loans | FHA Home Refinance Loans in California | 2015 FHA Loan Limits in California
Apply Now | Disclosures and Terms | About Us | Testimonials | Site Map
BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
Please be aware that this is not an advertisement for credit. Nothing on this site contains an offer to make a specific home loan for any purpose with any specific terms. This is a web-site and no loans can be guaranteed as loans and rates are subject to change. Copyright © 2001-2013 and Beyond, BDnationwidemortgage.com is a website and cannot make loans. All rights reserved.