Home Loans California & Arizona

FHA home loans in Ontario CA for purchase and refinance lending, FHA loans is perfect for first time home buyers with low credit scores or limited funds.

FHA stands for Federal Housing Administration and the is to help stimulate the housing market by making home loans more accessible and affordable for those individuals to make homeownership a reality.

For 1st time home buyers looking to buy a house, this is a great home loan program to start with, if you have credit scores in the high 500s or low 600s this is a great program for you. FHA is much more flexible in terms of credit scores than Conventional will be. That are 2 areas of the the credit all lending programs are concerned with are, the credit score and what is in the body of the credit. You may have lendable credit but miss the mark on what is in the body of the credit like collections, judgements, short sale, foreclosure, late pays, etc...

FHA will allow a higher debt to income ratio than Conventional will, once we run your loan scenario through the DU FHA Score Card, it will approve you at the highest debt ratio based on the strength of the file like credit scores and liquid reserves. An FHA underwriter still will need to review the income to determine accurate debt ratios.

Down payment assistance home loan programs are available for all types of home lending but geared more towards FHA loan programs. To see if you are available for any and all types of down payment programs click HERE and complete the short questionnaire form to see what is available for you to take advantage of.

The down payment can come from many sources such as, gift from a family member, retirement program, sell of something of value with proper documentation for the paper trail, down payment assistance program (not limited to first time home buyers), combine 2 more down payment assistance programs to purchase a home, we can always find money for the down payment and closing cost.

FHA lowered the monthly mortgage insurance on January 26th 2015 from 1.35% to .85% with less than 5% for the down payment. This allows buyers to purchase a little higher in price point, that was a big move for HUD to lower that premium, making housing much more affordable for buyers.  

Co-Signers are also allowed when applying for a FHA home loan when buying a house. The co-signer can be a non-occupant co-signer, which means they do not need to live in the property with the primary applicant. The co-signer must also qualify as well with their income and credit. So when bringing in an additional applicant make sure they are just as strong as you are. 

As the guidelines stand today with the down payment are, if you put less than 10% down the monthly mortgage remain in the payment through the 30 year term. If you were to put 10% or more for the down payment the mortgage insurance will drop off after 11 years and you are at 78% of the original purchase amount or the appraised value which ever was less at the time you closed escrow on your property. If you put less than 10% down, the only way to have the mortgage insurance remove is that you must refinance out of the FHA loan and into a Conventional loan. Still an excellent loan programs that offers as little as 3.5% down or .5% down coupled with a down payment assistance home loan program in California.

Once in the FHA program, you can refinance into a lower payment without a credit report, appraisal or income documentation, making the refinance that much smoother to process. Each lender will have their own guidelines when it comes to this program known as the FHA Streamline Refinance Home Loan Program. Need to check with a loan officer to see what they require.

Each applicant must have their loan application reviewed and processed according each mortgage lender's underwriting guidelines. FHA has their basic underwriting matrixes but each lender may add to those matrixes. 

I welcome the opportunity to speak or meet with you to discuss your plans and goals about this great home loan for homebuyers looking to work with a seasoned licensed loan officer.

FHA home loans in Ontario CA for purchase and refinance lending, FHA is perfect for first time home buyers with low credit scores or limited funds to own a house. We offer this program along with many other direct home loan programs in California. Contact me at 909-503-5600 or email me HERE

Posted by Nathan Rufty on June 27th, 2015 9:29 AM

What is a HUD 184 Home Loan Program in California and How do I qualify for one?

 


Purpose of the HUD-184 loan program:

 

The HUD Section 184 program is based on a government-to-government relationship between federally recognized tribes and the United States Government. American Indians and Alaska Natives may access this loan guarantee program as a benefit of purchasing a home as their primary residence while currently enrolled as members of federally recognized tribes, bands, communities, villages, Pueblos and Rancherias in the U.S. 


Borrower Eligibility for the program:

An applicant must be a member of a federally recognized tribe, a regional or village corporation as defined in the Alaska Native Claims Settlement Act or one of the five approved state tribes: Coharie Tribe (North Carolina); Haliwa-Saponi Tribe (North Carolina); Lumbee Tribe (North Carolina); Waccamaw Siouan Tribe (North Carolina); MOWA band of Choctaw (Alabama). To determine if a tribe is federally recognized, consult the Bureau of Indian Affairs website for the most up-to-date tribal directory (found at www.bia.gov under Document Library, referred to as FR Notice – Indian Entities Recognized and Eligible to Receive Services). Proof of membership or enrollment in a federally recognized tribe (or one of the five approved state tribes) will be determined through possession of a tribally issued enrollment card or through possession of a letter from the tribal enrollment office stating that the applicant is a member of the tribe. 


Property Eligibility 

The property that will be guaranteed by the HUD Section 184 program must be in an approved Indian Operating area. As of 2013 there are Indian operating areas in 39 states. The map of approved Indian operating areas can be found on the HUD website at: 

http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/ih/homeownership/184
 

Only properties located on Fee Simple Land are eligible at this time, we do not lend on leased land. 

Note: Eligible tribal members are not limited to purchasing a home in a place where their tribe is authorized to provide housing. For example, if an Oklahoma tribal member wants to purchase a home in California that is allowed. 


Maximum LTV/CLTV Transaction Type 

Max LTV 

Max CLTV 

Purchase 

97.75% 

97.75%2 

Rate/Term Refi 

Cash-Out Refi 

85% 

85% 

2HUD will permit second mortgages when the purchase price of the home is higher than Section 184 loan limits. The second mortgage cannot substitute for the 2.25% required down payment. The combined first and second mortgages cannot exceed the appraised value. Eligible Loan Types 

Owner Occupied Only 

Purchase 

Rate/Term Refinance 

Cash-Out 

Minimum FICO 

600 for all transaction types 


 

Why Should I Use the HUD Section 184 Loan?

There are many advantages in using this program:

Low Down Payment: 2.25% down payment of the purchase amount on loans over $50,000 and only 1.25% on loans under $50,000, this less than the standard requirement on FHA loan of 3.5% down on any loan amount 

No Pre-pay penalty: Can pay loan off at anytime 

No Monthly Mortgage Insurance: only a one time 1.5% up front guarantee fee which can be financed into the loan 

Protection from predatory lending: Program is monitor on the fees that an approved lender can charge Native American borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs), fix rates only

Posted by Nathan Rufty on December 16th, 2014 12:17 PM

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