Orange County FHA, VA & First Time Buyer Loan Information: Orange County "High Balance" FHA Loans to $625,500 with 3.5% Down Payment

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.

Orange County "High Balance" FHA Loans to $625,500 with 3.5% Down Payment

In Orange County, CA the 2009 loan limits are $625,500 for an FHA mortgage. This is a big increase from the low limits FHA used to have in Orange County. Until March of 2008, when FHA implemented a temporary increase for the remainder of 2008, the maximum FHA loan was only $362,790.

A $625,500 loan will buy a nice home in Orange County. A home buyer can purchase a home for approximately $650,000 with only a 3.5% down payment. Realistically, even a buyer with a 10% down payment may need to take a serious look at FHA for their loan. It has become very difficult, especially on Conventional loans over $417,000, to get PMI (Mortgage Insurance) when there is only 10% for down payment. To make matters worse, if the borrowers FICO score is under 700 they may need 20% down on a Conventional loan.

This is not the case with an FHA loan. On FHA loans over $417,000, even a borrower with a 620 FICO score can buy a $650,000 home with 3.5% down.

FHA Works with more than 3.5% Down Payment

That should seem obvious. In situations where the buyers FICO score is below 700, or worse, below 680, the interest rate can really jump up on a Conventional loan at 90% and 85% loan to value. On an FHA loan, there is generally not a difference in interest rate for someone with a FICO of 720 or 620. Anyone having a tough time trying to do a Conventional loan with 10% down or even 15% down, should check out what an FHA loan can do for them.

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.

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Comment balloon 1 commentTim Storm • January 15 2009 11:25AM


That is a great loan limit Tim. Anyone looking for a home with less than 20% down should definitely consider FHA.

Posted by Fred Chamberlin, Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant (Guild Mortgage Co - Oak Harbor WA) over 10 years ago