First-Time Buyer FHA Loans in California
First-time homebuyers (FTHB) are using FHA loans all across California. Popular counties are Los Angeles, San Bernardino, Ventura and Kern. In this great real estate environment FHA loans are in use from Bakersfield to Claremont and Oxnard to Upland.
Home affordability is at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent. Home prices in many markets have not only stabilized but are actually rising. Interest rates could be poised to rise in coming months as the FED is scheduled to stop supporting mortgage bonds through the TARP stimulus. Finally, the tax credit of $8,000 for qualifying FTHBs is currently scheduled to end November 30, 2009.
What is the FTHB facing in today’s market?
Most shoppers are getting frustrated with the multiple offers and escalating bidding on homes, they are struggling with the new lending rules and they are concerned that they can actually close the deal and become homeowners. Prejudice against buyers with FHA loan approvals is also a growing concern. Overcoming these market realities is simply a matter of organization, and certainly, some are better at it than others. But primarily, the FTHB has to become adept at keeping paper, and keeping it in a folder that is finger tip ready. In the folder you will need:
- 60 days of paystubs, always current
- 60 days of all pages of all asset accounts, always current
- 24 months of job and housing history with addresses and phone numbers
- 24 months of W2’s and signed federal tax returns with all schedules
- 2 forms of ID, one with a picture and one verifying legal residency in the United States
- Letters of explanation for everything your lender says you need to explain on your credit report or about your income and assets
These things will get you on your way, with more to come as you find a property and structure your deal. A mess at the front end will only cause stress and delay at the back end. Procrastination can cost the first time buyer dearly. Make the folder, get help structuring your scenario and your FHA lender will work with everyone else on your behalf so that you can become a homeowner.
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Top Articles / Links / Questions:
- FHA Loan Limits – Upland, CA
- FHA Seller Paid Closing Costs – Upland, CA
- California Investment Property With an FHA Loan
- What Is FHA Gift Money?
- The Trouble With FHA Loans in California
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Brian WiesnerCalifornia FHA Mortgage Expert |
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