How To Qualify For FHA Loan in Bolinas California (Marin County)

How To Qualify For FHA Loan in Bolinas California (Marin County)

Looking for an FHA Loan in Bolinas California?

An FHA loan is a home loan that’s 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 FICO score can be between 500 – 579 if a 10% down payment is made. It’s crucial to remember though, that the lower the credit rating, 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 adequate insurance; and to help grow the housing market by making mortgages much more accessible and attainable for home-buyers with less than stellar credit or a low down payment due to FHA mortgage limits in Bolinas, 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 mortgages 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.


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

FHA Loan in Bolinas

Typically an FHA loan in Bolinas 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.

Consumers 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 is that it’s an assumable mortgage which means if you want to sell your property, 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 Marin 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 aggressive with respect to gifts for down-payment. Very few loan programs will allow 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 family member, 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 process.

The FHA Hybrid provides for an initial fixed interest rate for a period of three or five years, and then readjusts annually after the initial fixed period. The 3/1 and 5/1 FHA Hybrid products allow 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 very little even on a worst case rate change.

About Bolinas California

Prior to the European emigration of The golden state, the Coastline Miwok resided in the location, perhaps calling the location “Bali-N”.

Bolinas as well as contemporary Stinson Beach were when included by Rancho Las Baulines, a Mexican land grant given by Governor Pío Pico to Gregorio Briones in 1846.

The initial post workplace in the town of Bolinas opened in 1863.

In 1927, a 300 acres (121 ha) former dairy ranch on the Big Mesa was partitioned right into a grid of streets and also 5,336 great deals determining 20 feet × 100 ft (6.1 m × 30.5 m). Most of these lots were cost $69.50 by the San Francisco Bulletin as a membership promo. Parts of the mesa, including areas of Ocean Parkway, have considering that deteriorated into the sea. A couple of roads on the mesa are led and also preserved by the area, however many are unpaved, and either kept by adjoining homeowner or completely unmaintained. The Big Mesa has no sewer system, and residences on the mesa have private septic tanks.

The Bolinas coastlines were hit hard by the 1971 San Francisco Bay oil spill, with the neighborhood collaborating to clean the coastline of petroleum.

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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 home loan 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 Marin 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 Home Loans

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

  • FHA 203( k) loans – These FHA loans help property buyers purchase a house– and remodel it– all with a single mortgage. House owners can likewise utilize the program to re-finance their current mortgage and add the cost of remodeling tasks into the new loan. FHA 203( k) loans can be found in two types:
    • The limited 203( k) has a simpler application process, and the repair work or enhancements need to total $35,000 or less.
    • The basic 203( k) requires extra documents and applies to enhancements costing more than $5,000, however the overall worth of the property need to still fall within the FHA mortgage limit for the area.
  • House Equity Conversion Mortgage, or HECM – A HECM is a popular type of reverse mortgage and is also guaranteed by the FHA. A HECM permits older house owners (aged 62 and up) with considerable equity or those who own their homes outright to withdraw a portion of their house’s equity. The quantity that will be available for withdrawal varies by debtor and depends on the age of the youngest customer or qualified non-borrowing partner, existing rate of interest and the lower of the home’s appraised value or the HECM FHA mortgage limitation or list prices.
  • FHA Energy Efficient Mortgage (EEM) program – Energy efficient mortgages backed by the FHA allow homebuyers to acquire homes that are currently energy efficient, such as EnergyStar-certified buildings. Or they can be used to buy and renovate older houses with energy-efficient, or “green,” updates and roll the costs 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 tailored at debtors whose earnings will increase in time. You start with smaller sized month-to-month payments that slowly go up. 5 particular strategies are readily available: 3 strategies that allow 5 years of increasing payments at 2.5 percent, 5 percent and 7.5 percent every year. Two other strategies set payment boosts over 10 years at 2 percent and 3 percent every year.

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FHA Loan Limits for 2022

For 2019, the floor 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 “floorings” that FHA will guarantee. FHA updates limit amounts each year in response to changing home prices.

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

FHA Loan Relief

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

That relief might be in the form of a temporary duration of forbearance, a loan adjustment that would lower the rates of interest, extend the payback duration, 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 Bolinas CA?

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

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

Income limits: there are none. You’ll need enough to show that you can repay the mortgage loan 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 qualifications 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 demonstrates good credit history and a solid track record of timely payments will likely be eligible for the home loan.

How to Find FHA Lenders

Borrowers get their home loans from FHA-approved lenders in Bolinas instead of the FHA itself, which just guarantees the loans. FHA-approved lending institutions can have various rates and costs, even for the same loan.

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

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


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