Orange County FHA loan limits are higher in 2009 than they have ever been, allowing for home buyers to purchase "high priced" homes with only 3.5% down payment. Just last year, at the beginning of 2008, the highest the Orange County FHA limit had ever been was $362,790. In mid 2008 the limit was increased substantially to $729,750. For a few months at the beginning of 2009 the limit was down to $625,500, but in March was again increased to $729,750.
What Does this high loan limit do for an Orange County home buyer?
This allows an Orange County FHA first time home buyer (or any home buyer) to purchase a home for $755,000 with only 3.5% down payment. For a price that high their income would need to be at least $165,000 per year, verifiable, but that's a lot of leverage in a finance environment that is supposed to be tight. Jumbo Loans in Orange County are beginning to make a comeback. Jumbo loans are mortgages over $729,750.
What is an FHA Jumbo Loan?
An FHA Jumbo loan is any FHA loan in Orange County (for a single family home) with a loan amount greater than $417,000. Different counties have different loan limits. Click here to see southern California FHA loan limits. Los Angeles has the same loan limits as Orange County.
Even at these high limits only a 3.5% down payment is needed. The down payment can be a gift or come from a 401K. FICO scores need to be at least 620, and non-occupant co-borrowers are allowed. The loan program is a 30 year fixed rate, and interest rates are low.
What is the first step in finding out how much of an Orange County FHA loan I qualify for?
The first step is to contact a Direct FHA Lender in Orange County, CA who can prepare personalized FHA loan scenarios. This should be done prior to searching for a home in order to avoid the frustration of looking at homes that may be out of reach. Once a buyer has an idea of what they are qualified for they should get PreApproved for an FHA loan. This involves having the lender review tax returns, paystubs, bank statements and credit. Once PreApproved, it is time to begin the home search.
Authored by Tim Storm, CMPS, Sr. Loan Officer with Home Point Financial, a Direct Endorsed FHA Lender located in Newport Beach, CA. For information on FHA, or to be prequalified please call 949-829-1846.