Orange County First Time Buyers are Taking Advantage of the 2009 FHA Jumbo Loan Limits

The increased FHA loan limits in Orange County, CA, which now max out at $729,750, are giving Orange County home buyers more leverage in purchasing a home. The FHA Jumbo loan, also known as the  "High Balance" FHA loan, is any FHA loan between $417,000 and $729,750. Home buyers in these upper price ranges get the same advantages that FHA offers for a "normal" FHA loan, which is a loan under $417,000. The advantages are listed below.

Orange County FHA Loan Advantages:

  • Only 3.5% down payment requirement
  • The down payment can be all gift (from relative) or come from a 401K
  • Low FICO scores accepted. (This is relative to Conventional financing.) FICO's down to 620.
  • Low 30 year Fixed rates with no prepayment penalty.
  • Non-Occupant co-borrowers allowed to help with income qualifying.
  • Do not need to be a first time buyer.
  • No income limitations
  • FHA Streamline Refinance program available if rate drop in the future. The FHA Streamline refinance program requires no appraisal or qualifying.

Buy a Nice Home with an FHA loan in Orange County


If a buyer wanted to take advantage of the maximum FHA loan with the minimum down payment, or at least get close to it, they could purchase a home for $755,000 with only a 3.5% down payment. ($26,425 down.)  The buyer could even negotiate to have the seller pay all closing costs. FHA is a Full Income documentation loan, so the buyer does need to make a pretty decent sized income to qualify for this, and verifiable for the past 2 years. The buyer would need to make approximately $170,000 per year to qualify, depending on debt payments for car, credit cards, or student loans.

Taking in consideration the tax benefits of owning a home, along with the principle paydown on the loan that is part of a mortgage payment, anyone paying rent of $3,000 or more and who also has the income, should seriously consider buying a home now.

For a personalized Rent vs Own analysis, contact Tim Storm with Frost Mortgage. We will also prepare customized FHA loan scenarios which will give a complete breakdown of the purchase price, loan amount, PITI, closing costs, and down payment required to purchase a home. This is the first thing a buyer should do prior to looking for a home.

Authored by Tim Storm, Senior Loan Officer with Frost Mortgage Lending Group, located in Irvine, CA. Frost Mortgage Lending Group is a Direct Endorsed FHA Lender, meaning all processing, underwriting, and funding is done in their office. Tim Storm has 20 year experience closing FHA loans and working with First Time Home Buyers in Orange County, CA and surrounding counties of Riverside, San Bernardino, San Diego, and Loan Angeles. For information please call 877.786.4243 x 7.

Posted by Tim Storm at 5/23/2009 12:11 PM
Categories: Irvine FHA,Orange County First Time buyer,Orange County FHA loan
Tags: orange county FHA orange county jumbo FHA Orange County first time buyer
 

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