FHA home loans San Jose are a kind of mortgage that are insured by the Federal Housing Administration.The Federal Housing Administration (FHA) was formed in the year 1934 in the United States. It was originally setup to stabilize the housing industry in the country and
However, the FHA does not make home loans directly to the borrowers. Rather, it guarantees a portion of a regular loan, in order to assure the lender that a certain portion will be paid back even if the borrower defaults. Under FHA home loans San Jose, California, borrowers pay insurance premiums that protects the lenders against defaults.
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Because of this assurance, FHA home loans San Jose are generally less stringent than conventional mortgages. This equates to certain benefits for the borrower; such as lower down payment requirements and more lenient credit standards.
You must consider FHA home loans in San Jose, California to remove such hurdles and especially if you had financial hardships in the recent years such as bankruptcy or foreclosure.
FHA home loans are designed with the first-time home buyer in mind. Minimum down payment of only 3.5% required, which can be gifted from a family member, and a minimum credit score of only 580. This coupled with no minimum income and more lenient credit requirements will open up the door to home ownership. No need to wait for everything to be just perfect.
Key points about FHA Home Loans San Jose
I’ve been guiding home owners in acquiring FHA home loans San Jose for the past 20 years in San Jose and other surrounding cities and I can simplify the whole mortgage process for you no matter what’s your current situation.
This is a no obligation, FREE consultation that could open the door to home ownership for you today. I am your local San Jose Mortgage Broker.