How To Qualify For FHA Loan in Belden California (Plumas County)

How To Qualify For FHA Loan in Belden California (Plumas County)

Looking for an FHA Loan in Belden California?

FHA loans have been a flexible mortgage program that’s been around since the 1930’s and is insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+.

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 score can be between 500 – 579 if a 10% down payment is made. It’s important to remember though, that the lower the credit worthiness, 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 rise of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with sufficient insurance; and to help stimulate the housing market by making mortgages highly accessible and affordable for people with not so great credit or a low down payment due to FHA mortgage limits in Belden, California. Essentially, the federal government insures loans for FHA-approved mortgage 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 beneficial mortgage loan interest 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.


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

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

FHA Loan in Belden

Typically an FHA loan in Belden 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.

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 scenario.

Another advantage of an FHA mortgage loan is that it’s an assumable mortgage which means if you want to sell your house, 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 Plumas 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 mortgage loan programs will make it possible for 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 adjusts 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 adjustment. This insures that the payment adjustment will be minimal even on a worst case rate change.

About Belden California

The Belden article office opened in 1909. The name honors Robert Belden, its very first postmaster.

Belden is located at 40 ° 0 ′ 23 ″ N 121 ° 15 ′ 9 ″ W/ 40.00639 ° N 121.25250 ° W/ 40.00639; -121.25250(40.006439, -121.252546).

According to the United States Census Bureau, the CDP has a total location of 0.7 square miles (1.8 kilometres), of which 0.6 square miles (1.6 kilometres2) is land and also 0.1 square miles (0.26 kilometres) (15.95%) is water.

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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 annual 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 Plumas 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!)

Kinds Of FHA Home Loans

In addition to its popular FHA loan, the FHA also insures other loan programs offered by personal loan providers. Here’s a look at each of them.

  • FHA 203( k) loans – These FHA loans assist property buyers acquire a house– and remodel it– all with a single home loan. House owners can also utilize the program to re-finance their current home loan and add the expense of remodeling tasks into the new loan. FHA 203( k) loans been available in 2 types:
    • The minimal 203( k) has an easier application process, and the repairs or enhancements need to amount to $35,000 or less.
    • The standard 203( k) requires extra documentation and applies to enhancements costing more than $5,000, but the total worth of the residential or commercial property need to still fall within the FHA home loan limit for the location.
  • House Equity Conversion Mortgage, or HECM – A HECM is a popular type of reverse home loan and is likewise guaranteed by the FHA. A HECM enables older homeowners (aged 62 and up) with substantial equity or those who own their houses outright to withdraw a portion of their house’s equity. The amount that will be readily available for withdrawal varies by customer and depends upon the age of the youngest debtor or eligible non-borrowing partner, existing rates of interest and the lesser of the house’s evaluated worth or the HECM FHA mortgage limitation or sales price.
  • FHA Energy Efficient Mortgage (EEM) program – Energy efficient home loans backed by the FHA allow homebuyers to purchase houses that are already energy effective, such as EnergyStar-certified buildings. Or they can be used to purchase and redesign older homes with energy-efficient, or “green,” updates and roll the expenses of the upgrades into the loan without a bigger deposit.
  • FHA Section 245( a) loan – Also referred to as the Graduated Payment Mortgage, this program is geared at borrowers whose incomes will increase with time. You start out with smaller regular monthly payments that gradually go up. Five specific plans are offered: three strategies that permit 5 years of increasing payments at 2.5 percent, 5 percent and 7.5 percent each year. 2 other strategies set payment boosts over 10 years at 2 percent and 3 percent yearly.

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

FHA Loan Limits for 2022

For 2019, the flooring limit for FHA loans in most of the country is $314,827, up from $294,515 in 2018. For high-cost locations, the ceiling is $726,525, up from $679,650 a year earlier. These limits are referred to as “ceilings” and “floorings” that FHA will insure. FHA updates limit quantities each year in reaction to altering house prices.

FHA is required by law to change its amounts based upon the loan limits set by the Federal Housing Finance Agency, or FHFA, for standard home mortgages guaranteed or owned by Fannie Mae and Freddie Mac. Ceiling and floor limitations differ according to the cost of living in a particular area, and can be various from one county to the next. Locations with a greater expense of living will have greater limits, and vice versa. Unique exceptions are produced housing in Alaska, Hawaii, Guam and the Virgin Islands, where house building and construction is more expensive.

FHA Loan Relief

Loan servicers can provide some flexibility on FHA loan requirements to those who have actually suffered a severe monetary difficulty or are struggling to make their payments.

That relief might be in the form of a short-term period of forbearance, a loan adjustment that would lower the interest rate, extend the payback period, or defer 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 Belden CA?

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

Note: you never know until you put in an application. Even if you think you won’t qualify after reading this page, talk with an FHA approved lender in Belden 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 applicants. If you’re lucky 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 guidelines 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

Customers get their home loans from FHA-approved loan providers in Belden instead of the FHA itself, which just guarantees the loans. FHA-approved loan providers can have various rates and expenses, even for the very same loan.

FHA loans are available through numerous sources– from the most significant banks and credit unions to neighborhood banks and independent mortgage lending institutions. Expenses, services and underwriting standards differ among lending institutions or home loan brokers, so it’s important to look around.

Find out more about how to find low FHA home loan loan provider.


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