FHA loans in San Francisco CA?
YES! You could use an FHA loan to buy a home in San Francisco and many parts of the bay area today. Historically, most of the bay area has simply had home prices too high for FHA to make sense. Today, we have incredibly low rates combined with low home prices and FHA loan limits up to $729,750. We even have up to an $8,000 tax credit for first time buyers and up to a $6,500 tax credit for move up buyers just as icing on the cake.
Remember kids, this is a loan that has been around since 1938, this is not the new kid on the block. FHA loans are guaranteed by the Department of Housing and Urban Development (HUD) and it is one of the few remaining loan programs allowing a very small down payment—specifically, 3½% of the purchase price. FHA loans have opened the door to home ownership to millions of deserving people since being introduced and I have been closing them for over 17 years. Today, FHA loans make up a very large segment of the market.
- FACT: Underwriting is flexible; lenders have a great deal of leeway when underwriting and approving loans. Credit requirements are actually more forgiving than for conventional programs–this means a larger pool of buyers who will qualify for financing.
- FACT: FHA loans are exempt from the requirements of the Home Valuation Code of Conduct (HVCC). We use certified, dependable and trustworthy appraisers, professionals we have known and worked with for years. We avoid the risks and uncertainty associated with unknown, possibly inexperienced appraisers from the HVCC “pool.”
- FACT: The requirements for the property are reasonable. An FHA-certified appraiser performs an expanded inspection of the property, but only for obvious health and safety issues. A termite clearance is required only if the appraiser notes specific evidence of termite damage, or if there is special notice of termite work in the purchase contract.
- FACT: FHA underwriters tend to be more experienced than their conventional counterparts. They operate under common-sense guidelines and issue approvals with fewer loan conditions
- FACT: Most of the San Francisco bay area is considered a high balance area and allow FHA loans to go as high as $729,750. The maximum FHAL loan limits vary from county to county so call or email for specifics on your area.
The bottom line is that an FHA loan is actually less demanding than a conventional loan and it may even have fewer hurdles to closing. We are a nationwide FHA Full Eagle direct lender, we can close on time.
If you have any questions, please email or call me for more information.
Hans Bruhner, CMPS
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