Don’t worry if you have little money saved and a less than perfect credit score for buying your dream home. In many cases, FHA loans can help. Whether you are a first time home buyer or you need to refinance, FHA loans in San Jose is worth considering.
FHA loans are a type of home loans in San Josethat the Federal Housing Administration insures. They require a smaller down payment and lower closing costs. It permits convenient lending standards to help people who do not qualify for a conventional mortgage. Conventional loans are difficult to get as they have stricter requirements, and require a higher credit score and bigger down payment. On the other hand, Federal Housing Administration loans permit a down payment of as little as 3.5% on a mortgage. This makes it easy for the low and the middle income group individuals to buy their dream home.
What is the required credits core for getting FHA loans?
According to experts dealing with FHA loans in San Jose, FHA requires a minimum credit score of at least 580 to qualify for the 3.5% down-payment advantage. Remember, a lower credit score cannot disqualify you. The credit score can vary by lender. It is good to shop for your home loan.
What is the limit for FHA loan limit?
The limit of FHA loan can vary based on location and property type. You can find the limit for your area by taking help of a mortgage broker.
What are the available types of FHA loans?
In today’s home loans market in San Jose, a wide variety of FHA loans are available to meet the diverse needs of the consumers. Mentioned below are the popular types.
- Fixed rate mortgage — It is a type of loan with a set interest rate and a fixed time frame.
- Adjustable rate mortgage — It is a type of mortgage loan with a varying interest rate that fluctuates and moves up and down based on the market conditions.
- Hybrid mortgage — It is a combination that begins with a fixed interest for a certain time period and then becomes adjustable rate mortgage.
- Home equity loans — They are the loans secured by your home that provide the borrower with a lump sum or a new line of credit.
If you want a buy a home, you should get in touch with a professional broker who has good experience in the market of FHA loans in San Jose.