Who Would Want an FHA Loan to Buy a Santa Cruz County Home?

Posted by Lauren Spencer on Thursday, February 3rd, 2011 at 11:01pm.

Some Santa Cruz County home buyers have an advantage that others don’t in today’s housing market.  They can qualify for an FHA loan. 

Federal Housing Administration (FHA) loans help Santa Cruz County home buyers who would otherwise have trouble being approved for a mortgage.  You can qualify for a loan if you have less than perfect credit.  FHA loans are available even after bankruptcy and foreclosure, if you have maintained good credit for the following two to three years.

What are the requirements for FHA loans?
FHA loans have strict home appraisal guidelines.  The appraisal value helps determine the FHA mortgage limit.  Each state has its own rules regarding maximum loan limits.

What are the advantages to FHA loans?
One advantage of an FHA loan is lower down payment requirements.  You may qualify for a down payment as low as 3.5 percent of the purchase price of the property.  Additionally, most of your closing costs can be included in the loan, so you’ll have less out of pocket expenses.

An FHA loan can also be used to buy a house that needs improvements.  If you need cash to make the repairs, you can apply for a loan to cover the cost of the expected repairs.  The FHA also has energy efficient mortgages which include the costs of energy improvements.

What are the terms of FHA loans?
An FHA loan can take many forms: it may be a fixed-rate loan, an adjustable rate mortgage (ARM) or a reverse mortgage.
• A fixed-rate mortgage has a set interest rate for a set amount of time.  Typically, it will be a 15 or 30-year loan.
• An ARM has a variable interest rate for 15 to 30 years.
• The reverse mortgage pays a set amount of money to the homeowner for the entire time they live in the home.

Whether you’d like to finance a Santa Cruz County home using an FHA loan or a non-FHA loan, I can help.  Give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.

For additional information please visit my website at www.MySantaCruzRealEstate.com

Links:

FHA loans

Energy efficient mortgages

Reverse mortgage

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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