Orange County FHA, VA & First Time Buyer Loan Information

My goal is to provide valuable information for home buyers, both First Time Buyers and Move Up Buyers. This information will be about loan programs such as FHA ,VA, Conventional Fannie Mae and Freddie Mac, Reverse Mortgages, and even Portfolio Jumbo programs. I will also touch on tax advantages of homeownership, Rent vs. Own analysis, and any other aspect of loans and home ownership that will be of interest to Orange County home buyers and homeowners.

FHA is Becoming the Loan of Choice for First Time Buyers in Orange County, CA

FHA has become the loan of choice for not only First Time Buyers, but any home buyer who has less than 10% for down payment. FHA only requires 3% (3.5% as of 1/1/2009) down, although that will change on January 1, 2009 to 3.5%, still a small amount compared to a Conventional loan.

Also, FHA is flexible on the source of the down payment. It can , or course from the checking or savings account of the buyer. It can also come from a 401K, however on a Fannie Mae or Freddie Mac loan, if the a loan from a 401K is used for the down payment, that new 401K loan payment is calculated into the debt to income ratios. On a FHA loan, the 401K payment is not included in the calculcation. Also, the entire down payment can be a gift from a relative on an FHA loan.

For more information on FHA loans and some of the other advantages, click here.

The flexibility in underwriting on an FHA loan as compared to other mortgage products currently available is a big advantage to any buyer looking to purchase a home in Orange County, CA. Especially with the high FHA limits Orange County will have in 2009, which will be $625,500 (adjusted to $729,750 currently). The high limits will work well in cities like Irvine, Newport Beach, Tustin, Santa Ana, Lake Forest, Aliso Viejo, Orange, etc. Now is a great time to review your options and get prequalified for a home.

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Comment balloon 2 commentsTim Storm • November 10 2008 07:59PM
FHA is Becoming the Loan of Choice for First Time Buyers in Orange…
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FHA has become the loan of choice for not only First Time Buyers, but any home buyer who has less than 10% for down payment. FHA only requires 3% (3. 5% as of 1/1/2009) down, although that will change on January 1, 2009 to 3. 5%, still a small amount… more
Orange County FHA Limits Annouced by HUD
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HUD just released MORTGAGEE LETTER 2008-36 which listed the new FHA loan limits for Orange County, CA. The new limit is $625, 500, which is good news. This new limit will be effective for FHA case numbers issued after January 1, 2009. The currently… more
Financing on Bank Repo's
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We are seeing some great deals on bank owned properties right now. FHA is a great way to go on these loans and 1st time buyers are coming out of the woodwork to buy these homes. Most have good income and credit, and are buying a home that is less… more