Today's low refinance rates in Fresno CA
In this Article we will understand:
What is an FHA Loan?
Requirements of FHA Loan
What is an FHA Loan?
An FHA loan is a Government loan backed by Federal Housing Administration. It is to the liking of both borrowers as well as lenders. Particularly with First Time Home Buyers it has gained a lot of importance. It’s because the borrower can move into a home with as less as 3.5% down payment. The credit score requirement is a minimum of 580. It is important to understand that even though FHA rates are not credit score sensitive but it doesn’t mean that scores do not make any impact on FHA mortgage rate CA . A lower score would inevitably mean a higher rate.
The reason why it is to the linking of the banks and lenders is because the mortgage has a federal govt backing. This means that govt insures the lender that in the default of the borrower the lender will be made good.
The product was introduced in 1930 when there was reckless foreclosure and bankruptcy and it was felt that government must protect borrowers as well as lenders.
To protect banks and help mortgage borrowers FHA makes it mandatory for borrowers to pay Mortgage insurance premium.
Call Fresno CA expert below to get you the lowest mortgage rate on your refinance.
Requirements of FHA Loan:
FHA requires that the mortgage borrower must have a minimum of 580 as his credit score and must come up with a minimum down payment of 3.5% to purchase a home. The credit score and down payment are just two of the requirements. Here below is the list of other requirements whether you are looking to purchase a home or refinance your home.
Borrowers must have a steady employment history or worked with the same employer for two years
Borrower must be hold a valid social security and be a lawful citizen of United States. Must be of legal age to sign a contract.
Borrower is required to come up with a down payment of 3.5% from its own source or the funds can be gifted by a family member
FHA loans are only available for primary residence
Property has to be appraised through an FHA approved appraiser.
The Debt to Income ratio of the borrower should not go beyond 40% and in some cases not more than 50%.
Call Fresno CA expert below to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower.
CURRENT REFINANCE RATES MONTEREY CA
Product Rate Change
30 year fixed 3.63% 0.02
15 year fixed 2.99% 0.07
5/1 ARM 3.07% 0.14
Artical by Roger Shanker
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