Home Loans California & Arizona

FHA home loans in San Bernardino, California offer a wide range of benefits and consumer protection that conventional loans may lack. Some of the most attractive things about an FHA mortgage are the low down payment and more lenient credit requirements. FHA loans are, simply put, easier to qualify for than conventional mortgages.

FHA loans are insured by the Federal Housing Administration. FHA does not lend money or issue credit, so the first requirement of the FHA loan program is to apply for the FHA mortgage through a participating licensed FHA lender.

When you apply for an FHA loan to purchase a new home, you’re required to submit detailed information on your existing credit, employment history, and current income.

FHA lenders evaluate this information based on something called “the four C’s”  
  • Credit history
  • Capacity to repay
  • Cash assets available to close the mortgage, and
  • Collateral

According to the FHA, the lender must evaluate all FHA loan applications by:
  • Considering the type of income the borrower needs to qualify
  • Analyzing the borrower's liabilities to determine creditworthiness,  
  • Reviewing debt-to-income ratios and compensating factors.

There are two basic ways to apply for an FHA home loan. One is to find the home you want to buy, make an offer, and apply for the loan. Another way—one recommended by many personal finance experts—is to get pre-approved for a loan amount before committing to a particular home.

Either way, you’ll need to be prepared for an FHA home loan application with the following information:
  • Social Security numbers
  • Checking and savings account information (including account numbers)
  • Information on all open lines of credit including credit cards, student loans, auto loans, etc.
  • Complete information on any real estate you currently own
  • Approximate value of your personal property
  • Gross monthly income amounts for all current employment
  • Your addresses for the past two years
  • The name and addresses of your employers for the last two years

You’ll also be required to supply the following paperwork:
  • Tax returns for the past two years
  • Current pay stubs or other paperwork verifying your current income
  • Income statement and business balance sheet (these are required for self-employed borrowers only)

Ready to apply for an FHA Home Loan in San Bernardino, California? Call Nathan Rufty at 909-503-5600.
Posted by Nathan Rufty on February 12th, 2020 6:22 PM

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