How To Qualify For FHA Loan in Antelope California (Sacramento County)

How To Qualify For FHA Loan in Antelope California (Sacramento County)

Looking for an FHA Loan in Antelope California?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). Popular with first-time home-buyers, FHA loans require lower minimum credit scores and down payments than many commonplace loans.

How Does an FHA Loan Work?

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower’s credit rating can be between 500 – 579 if a 10% down payment is made. It’s crucial to remember though, that the lower the credit score, the higher the interest borrowers will receive. Something also worth noting is that the FHA loan limits affect your FHA mortgage insurance – its just part of the FHA loan qualifications.

The FHA program was created in response to the increase of foreclosures and defaults that happened in 1930s; to provide mortgage companies with adequate insurance; and to help spark the housing market by making home loans much more accessible and attainable for home-buyers with less than stellar credit or a low down payment due to FHA mortgage limits in Antelope, California. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

Because of that insurance, mortgage lenders can, and do, offer FHA home loans at really attractive mortgage rates and with less stringent and more flexible qualification requirements. The FHA is an agency within the U.S. Department of Housing and Urban Development.


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Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

Typically an FHA loan in Antelope is one of the easiest types of mortgage loans to get approved for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA mortgage loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get qualified for private mortgage insurance should look into whether an FHA loan is the popular option for their personal circumstances.

Another advantage of an FHA mortgage loan is that it’s an assumable mortgage loan which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

FHA Allows a 3.5% Down-Payment

For today’s home buyers, there are only a few mortgage options which allow for down-payments of five percent or less for residents of Sacramento County. The FHA is one of them.

With an FHA mortgage, you can make a down-payment as small as 3.5%. This benefits home buyers who don’t have a lot of money saved up for down-payment; and, home buyers who would rather save money for moving costs, emergency funds, or other needs.

FHA Allows 100% Gift Funds

The FHA is vigorous with respect to gifts for down-payment. Very few home loan programs will permit your entire down-payment for a home to come from a gift. The FHA will.

Via the FHA, your entire 3.5% down-payment can be a gift from parents or another relative, an employer, an approved charitable group, or a government home-buyer program. If you’re using a down-payment gift, though, you’ll need to follow the procedure.

The FHA Hybrid provides for an initial fixed interest rate for a period of three or five years, and then changes annually after the initial fixed time frame. The 3/1 and 5/1 FHA Hybrid products enable up to a 1% annual interest rate adjustment after the initial fixed interest rate period, and a 5% interest rate cap over the life of the loan. The new payment after an adjustment will be calculated on the current principal balance at the time of the modification. This insures that the payment adjustment will be minimal even on a worst case rate change.

About Antelope California

In the late 1800s, Antelope was the only significant settlement in the Center Township, an area bounded on the North by the Placer county line, on the East by what is now Sunrise Blvd., on the South by the American River, and on the West by the line along 20th St in Rio Linda south to Ethan Way in the Arden-Arcade area. The population of the entire township in 1880 was about 400 people. Many of the railroad workers made their homes here and eventually stayed permanently. Gradually, workers left the area and Antelope became just another small community with little business.

On April 28, 1973, Antelope consisted of a post office, general store and a half-dozen homes. However, at 8:03 a.m., a rail car loaded with aircraft bombs exploded in the southern part of the Southern Pacific’s Roseville Yard, destroying the general store and damaging most of the homes. This event changed Antelope forever – it basically was blown away.

What is known as Antelope today mostly began as a planned community in the late 1980s. It consisted of mainly single-family homes and apartments. Due to the relative newness of the community, most homes are new and the area is well planned out. The proposed and ultimate closure of nearby McClellan Air Force Base between the years 1993-2001 did have a slowing-down economic impact upon this area (the “North Watt Avenue corridor”). Antelope received its own postmark and recognition as a community by the U.S. Postal Service on 1 July 1994.

According to the United States Census Bureau, the community has a total area of 6.84 square miles (17.7 km). Antelope is mostly flat, with very few hills and no major bodies of water.

The northern border of Antelope falls directly onto the line between Sacramento County and Placer County.

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Who Are FHA Loans For?

FHA loans are offered to low-income individuals who have credit scores as low as 500. Individuals with a credit score between 500-579 can obtain an FHA loan with a down payment of 10%; individuals with a credit score higher than 580 can get an FHA loan with as little as 3.5% down. The Federal Housing Administration does not lend the borrower the money to take on a mortgage or to buy the house. Rather, the borrower pays a monthly or yearly mortgage insurance premium to the FHA to insure the loan which the lending institution issues to him or her. In case of default, the lender’s financial risk is minimized since the FHA would step in to cover the payments.

Having no credit history is not a problem with an FHA loan for Sacramento County. Instead of your credit report, the lender may look at other payment-history records, such as utility and rent payments.

Even people who have gone through bankruptcy and foreclosure may still qualify for an FHA loan. However, the lower the credit score and the lower the down payment, the higher the interest rate.


(Or call 213-474-7389 to ask a local lender anything!)

Types of FHA Loans

In addition to its popular FHA loan, the FHA likewise guarantees other loan programs offered by personal lenders. Here’s a take a look at each of them.

  • FHA 203( k) loans – These FHA loans help homebuyers buy a house– and renovate it– all with a single home mortgage. Homeowners can likewise use the program to re-finance their current home mortgage and include the expense of remodeling jobs into the brand-new loan. FHA 203( k) loans been available in two types:
    • The restricted 203( k) has an easier application procedure, and the repair work or improvements should amount to $35,000 or less.
    • The basic 203( k) needs extra paperwork and applies to enhancements costing more than $5,000, but the total value of the property must still fall within the FHA mortgage limitation for the area.
  • House Equity Conversion Mortgage, or HECM – A HECM is a popular kind of reverse mortgage and is likewise guaranteed by the FHA. A HECM allows older homeowners (aged 62 and up) with significant equity or those who own their homes outright to withdraw a portion of their house’s equity. The amount that will be available for withdrawal varies by customer and depends on the age of the youngest debtor or eligible non-borrowing partner, existing rate of interest and the lower of the house’s evaluated value or the HECM FHA home mortgage limitation or list prices.
  • FHA Energy Efficient Mortgage (EEM) program – Energy effective home mortgages backed by the FHA permit property buyers to purchase houses that are currently energy efficient, such as EnergyStar-certified buildings. Or they can be utilized to buy and redesign older homes with energy-efficient, or “green,” updates and roll the expenses of the upgrades into the loan without a larger down payment.
  • FHA Section 245( a) loan – Also called the Graduated Payment Mortgage, this program is tailored at borrowers whose incomes will increase in time. You start out with smaller sized month-to-month payments that gradually increase. 5 particular plans are available: 3 plans that permit 5 years of increasing payments at 2.5 percent, 5 percent and 7.5 percent each year. 2 other plans set payment increases over 10 years at 2 percent and 3 percent yearly.

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FHA Loan Limits for 2023

For 2019, the flooring limitation for FHA loans in most of the country is $314,827, up from $294,515 in 2018. For high-cost areas, the ceiling is $726,525, up from $679,650 a year back. These limits are referred to as “ceilings” and “floors” that FHA will guarantee. FHA updates restrict amounts each year in response to changing home prices.

FHA is needed by law to change its amounts based on the loan limits set by the Federal Housing Finance Agency, or FHFA, for standard mortgages ensured or owned by Fannie Mae and Freddie Mac. Ceiling and flooring limits vary according to the expense of living in a specific location, and can be different from one county to the next. Areas with a higher cost of living will have greater limits, and vice versa. Unique exceptions are made for housing in Alaska, Hawaii, Guam and the Virgin Islands, where home construction is more expensive.

FHA Loan Relief

Loan servicers can use some versatility on FHA loan requirements to those who have suffered a major financial difficulty or are struggling to make their payments.

That relief might be in the form of a short-lived period of forbearance, a loan adjustment that would decrease the rates of interest, extend the repayment duration, or delay part of the loan balance at no interest.

The FHA Hybrid Adjustable Rate

FHA administers a number of programs, based on Section 203(b), that have special features. One of these programs, Section 251, insures adjustable rate mortgages (ARMs) which, particularly during periods when interest rates are low, enable borrowers to obtain mortgage financing that is more affordable by virtue of its lower initial interest rate. This interest rate is adjusted annually, based on market indices approved by FHA, and thus may increase or decrease over the term of the loan. In 2006 FHA received approval to allow hybrid ARMs, in which the interest is fixed for the first 3 or 5 years, and is then adjusted annually according to market conditions and indices.

How do you Qualify for an FHA Loan in Antelope CA?

The FHA makes it relatively easy to qualify for a mortgage loan. Again, the government guarantees the loan, so lenders are more willing to approve loans. However, mortgage lenders can (and do) set standards that can be stricter than FHA requirements. If you’re having trouble with one FHA approved lender near Antelope CA, you might have better luck with choosing another.

Note: you never know until you submit an app. Even if you think you won’t qualify after reading this page, talk with an FHA approved lender in Antelope to find out for sure.

Income limits: there are none. You’ll need enough to show that you can repay the mortgage but these loans are geared towards lower income borrowers. If you’re fortunate enough to have a high income, you aren’t disqualified like you might be with certain first-time home buyer programs.

FHA Closing Costs

While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

FHA Debt Ratios

In order to prevent home-buyers from getting into a home they cannot afford, FHA requirements have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

FHA Credit Issues

An FHA loan applicant’s past credit performance that attests good credit history and a solid track record of timely payments will likely be eligible for the home loan.

How to Find FHA Lenders

Debtors get their mortgage from FHA-approved lending institutions in Antelope rather than the FHA itself, which only guarantees the loans. FHA-approved lending institutions can have various rates and expenses, even for the exact same loan.

FHA loans are readily available through many sources– from the biggest banks and credit unions to community banks and independent home loan lenders. Expenses, services and underwriting requirements differ amongst lending institutions or mortgage brokers, so it’s important to shop around.

Discover more about how to discover low FHA mortgage lending institution.


(Or call 213-474-7389 to ask a local lender anything!)