The 2009 FHA loan limit for Orange County, CA is $625,500, which is a huge improvement over the limits back at the beginning of 2008 and before that. For part of 2008 FHA had set a temporary limit of $729,750, but prior to that the limit was only $362,790. For the last several years that number just wasn’t enough to actually buy a property in Orange County. But with the 2009 California FHA Loan Limit increase to $625,500, things have changed.
Los Angeles County is also at $625,500, while some ofthe surrounding counties have been cut back. For example, Riverside and San Bernardino have been lowered to $355,350 and San Diego is at $546,250.
FHA is the Loan of Choice for any Buying a home with 10% Down Payment of Less
Even with 10% down it is difficult to get mortgage insurance on a Conventional loan, unless a buyers FICO score is over 720. It is even tougher if the loan amount is over $417,000, which is considered an “Agency Jumbo”, among other names. FHA requires only a 3.5% down payment, and does not have higher interest rates and fees added to the loan unless a borrowers FICO score falls below 620. Try getting a Conventional loan with 10% down and a 620 score (or even a 660 score) and you’ll find out why FHA is a great option. And while you’re at it, you may as well put 3.5% down and keep money in the bank for reserves or improvements on the home being purchased. There are several sources for an FHA down payment.
FHA Offers a Rehab Loan Program – the FHA 203K
On top of the many benefits of FHA, the FHA 203K program offers an excellent option for those homes that need repair work. A buy can purchase a home and get additional money above the purchase price to improve the home, or even purchase appliances.
Written by Tim Storm, an Orange County, CA FHA Loan Officer - Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Tim Storm
Trust One Mortgage
108 Pacific, Third Floor
Irvine, CA 92618
877-786-4243 ext 7
Email Tim Storm
