Here are the main advantages of this type of loan in Southern California:
- You would have a minimum down payment of 3.5%
- Relaxed credit score requirements
- You would have low monthly mortgage insurance
You can apply for an FHA loan if you meet the following requirements:
- You must have been working with the same employer (preferably) for at least two years.
- You must have had less than two 30-day late payments to debtors in the last two years
- 30% of your gross (before taxes) income must be available to cover mortgage payments
- Your monthly debt must not exceed 43% of your monthly income
- You should be interested in keeping monthly payments as low as possible.
If you were to refinance an FHA loan in SoCal, you would get:
- Better rates
- Lower monthly mortgage payments (than you’re currently paying)
- No appraisal if you already have an FHA loan