Orange County FHA and Home Loan Blog: An FHA Loan is Not Just for Orange County, CA First Time Buyers

Orange County, CA Real Estate and Home Loan Blog

Mortgage Discussions -FHA, VA, Fannie Mae

Back to Main Page
Tim Storm, Sr. Loan Consultant, FHA Expert

Tim Storm, a Loan Officer with Frost Mortgage Lending Group, located in Orange County, CA, has worked helped home buyers with their mortgages since 1989. Tim Storm is a lifelong Orange County, CA resident and holds a Bachelor of Business Administration from the The University of San Diego. Tim holds a Brokers license with CA Department of Real Estate, as well as being a Certified Mortgage Planning Specialist, a designation issued through the Certified Mortgage Planning Institute. Tim and his team make sure the home buyers they work with, especially First Time Home Buyers, are well informed of all the loan programs available to them, including FHA, VA, Fannie Mae loans. Frost Mortgage Lending Group is a Direct endorsed FHA and VA lender. This means that Frost Mortgage will process, underwrite, and fund FHA and VA loans in our Orange County, CA office. This includes the FHA 203K Rehab mortgage and the FHA Reverse Mortgage. We also fund Fannie Mae, Freddie Mac, and a few other types of loans in our office.
Blogroll
March 2010

Su Mo Tu We Th Fr Sa
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
Quick Search

Search only in titles: Keyword:

Search in:

Date Range:

Advanced Search

Basic Search
Syndicate
Monthly Archives
Category Archives
Recent Entries
1. IRS Rules Regarding Home Buyer Tax Credit for Orange County First Time Buyers
  Sunday, February 28, 2010
2. First Time Buyer Tax Credit Deadline Approaches for Orange County Home Buyers
  Monday, February 15, 2010
3. Placentia Real Estate for Sale! FHA Financing Available on the Placentia Townhome
  Saturday, February 06, 2010
4. Great News for Orange County FHA Borrowers as HUD Waives 90 Day Flip Rule
  Saturday, January 30, 2010
5. Changes to FHA will Have Some Effect on Orange County First Time Home Buyers
  Friday, January 22, 2010
6. 2010 Will Be Another Big Year for Orange County First Time Buyers and the FHA Loan Program
  Thursday, January 07, 2010
7. Placentia Home For Sale. Only 3.5% Down Required with FHA Loan on this Orange County Home For Sale
  Sunday, November 15, 2009
8. Mortgage Interest Rates Remain Low for Orange County Home Owners in 2009
  Thursday, November 05, 2009
9. Orange County Home Buyers will Benefit from Extension of Loan Limits Through End of 2010
  Saturday, October 31, 2009
10. An FHA Loan is Not Just for Orange County, CA First Time Buyers
  Wednesday, September 30, 2009
Recent Comments
1. Tim Storm on Orange County FHA Mortgage PreApproval
  8/17/2009
2. Rock on Orange County FHA Mortgage PreApproval
  7/8/2009
3. Home Loans on How to Buy an Orange County Home With $0 Down Using a VA Loan
  6/29/2009
4. Mutuo prima casa on Orange County STRS Loan still offers 97% Financing
  6/21/2009
Subscribe

Blog Entry

An FHA Loan is Not Just for Orange County, CA First Time Buyers

FHA financing is not just for first time buyers, as many Orange County, CA move up buyers are finding out. Although FHA is quite often associated with First Time Buyers, being a first time buyer is not a requirement for qualifying for an FHA loan.

Why Do People in Orange County, CAThink FHA is only for First Time Buyers?

Flexibility with Credit - While Conventional Financing requires higher FICO scores, most lenders offering FHA will go down to a 620 FICO score.
Small Down payment - California is considered a "declining market", and as such, conventional financing requires 10% down payment. And to get that, you'd better have a 740 FICO. Realistically, anyone with less than 20% down will probably benefit by going with FHA. Plus, FHA only requires 3.5% down payment.
Flexible Underwriting - Alright, these days lenders will ask for more than you could ever imagine. "First born and a pint of blood" is not far off base. But there is still some flexibility with FHA when it comes to job history, especially for recent college grads with less than 2 years of employment history.
Down Payment can be from gift - Conventional financing allows this, but only with a 20% down payment. FHA will allow the entire down payment (all 3.5% of it) to be a gift from a relative.

Just a quick note. The only thing better than an FHA mortgage is a VA mortgage. In Orange County, CA, A Veteran can buy a home for $737,500 with $0 down.

Why FHA is Good for Orange County Move-up Home Buyers

This is the best time in years to move up into the dream home you've always wanted but maybe couldn't afford. The only problem is you've lost most of the equity in your current home. A few years ago an Orange County, CA home owner could have sold their home for (we're just estimating here) $600,000. Lets assume they would have had $250,000 of equity to pull out and put down on a new home. The price range they were interested in was $$900,000. Now, there $600,000 home is only worth $375,000. After selling their home, they will only have $25,000 to $30,000 for down payment. Not the 20% down payment they are thinking they need. But the home they liked a few years ago, worth $900,000, is now worth $550,000. Using an FHA loan they will only need $19,250 for the down payment. Not only that, the total mortgage payment, counting taxes and insurance, will be much less than it would have been if they had bought the home 2 years ago with 20% down. ($900,000 price and $720,000 loan.)

So yes, now is a great time to consider making a "move up" into the dream home. And FHA may be the best loan program for the job. First things first. Have an Orange County FHA Expert prepare loan scenarios to see if it make sense.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com