How To Qualify For FHA Loan in Frazier Park California (Kern County)

How To Qualify For FHA Loan in Frazier Park California (Kern County)

Looking for an FHA Loan in Frazier Park California?

An FHA loan is a mortgage 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 significant to remember though, that the lower the credit rating, the higher the interest borrowers will pay. 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 lenders with adequate insurance; and to help stimulate the housing market by making mortgages highly accessible and affordable for consumers with not so great credit or a low down payment due to FHA mortgage limits in Frazier Park, California. Essentially, the federal government insures loans for FHA-approved mortgage companies in order to reduce their risk of loss if a borrower defaults on their home loan payments.

Because of that insurance, mortgage companies 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 Frazier Park

Typically an FHA loan in Frazier Park 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 home loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved 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 loan 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 Kern 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 loan programs will enable 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 process.

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 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 minimal even on a worst case rate change.

About Frazier Park California

The earliest record relating to Frazier Park was a report in 1854 that lumber was being produced there from Frazier Mountain trees for use at the new Army post at nearby Fort Tejon. Local historian Bonnie Ketterl Kane wrote that the mill was “supposedly” at the southeast end of the present community. She cited another report that a Kitanemuk Indian referred to the site as Campo del Soldado (Soldier’s Camp), “which was where the soldiers stayed when they cut timber from a mountain they called Pinery Mountain, today’s Frazier Mountain.”

The community was established in 1925 by Harry McBain, who named it in 1926 for Frazier Mountain, on its southern flank. Its post office was established on September 14, 1927, with Charles B. Fife as the first postmaster.

Frazier Park was used in filming for The Waltons television show.

Frazier Park is the setting of the 2011 film The FP and 1974’s The Black Six.

Frazier Park lies within Cuddy Canyon in the San Emigdio Mountains, within the Los Padres National Forest. Mount Pinos is the highest peak in the area at 8,831 ft (2,692 m).

Other Cities You May Be Interested In

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 property. 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 Kern 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 Loans

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

  • FHA 203( k) loans – These FHA loans help homebuyers buy a house– and remodel it– all with a single home mortgage. Property owners can likewise utilize the program to refinance their existing home loan and add the cost of redesigning projects into the brand-new loan. FHA 203( k) loans can be found in 2 types:
    • The restricted 203( k) has an easier application process, and the repair work or improvements must total $35,000 or less.
    • The standard 203( k) needs additional documents and applies to enhancements costing more than $5,000, but the total value of the property need to still fall within the FHA mortgage limitation for the location.
  • Home Equity Conversion Mortgage, or HECM – A HECM is a popular kind of reverse mortgage and is also insured by the FHA. A HECM permits older property owners (aged 62 and up) with considerable equity or those who own their homes outright to withdraw a part of their house’s equity. The amount that will be offered for withdrawal varies by borrower and depends upon the age of the youngest customer or eligible non-borrowing partner, existing interest rates and the lesser of the home’s assessed worth or the HECM FHA home mortgage limitation or list prices.
  • FHA Energy Efficient Mortgage (EEM) program – Energy efficient home mortgages backed by the FHA permit homebuyers to acquire houses that are already energy efficient, such as EnergyStar-certified buildings. Or they can be utilized to buy and renovate older homes with energy-efficient, or “green,” updates and roll the expenses of the upgrades into the loan without a larger deposit.
  • FHA Section 245( a) loan – Also known as the Graduated Payment Mortgage, this program is tailored at customers whose incomes will increase in time. You start with smaller monthly payments that gradually go up. Five specific plans are offered: three strategies that allow five years of increasing payments at 2.5 percent, 5 percent and 7.5 percent annually. 2 other strategies set payment boosts over 10 years at 2 percent and 3 percent annually.

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

FHA Loan Limits for 2023

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 areas, the ceiling is $726,525, up from $679,650 a year ago. These limits are referred to as “ceilings” and “floorings” that FHA will guarantee. FHA updates limit amounts each year in response to changing home costs.

FHA is required by law to adjust its quantities based on the loan limitations set by the Federal Housing Finance Agency, or FHFA, for standard mortgages ensured or owned by Fannie Mae and Freddie Mac. Ceiling and flooring limitations vary according to the cost of living in a particular area, and can be different from one county to the next. Locations with a higher expense of living will have greater limitations, and vice versa. Unique exceptions are produced real estate in Alaska, Hawaii, Guam and the Virgin Islands, where house building and construction is more pricey.

FHA Loan Relief

Loan servicers can offer some versatility on FHA loan requirements to those who have suffered a major financial challenge 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 reduce the interest rate, extend the repayment period, 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 Frazier Park 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 mortgages. However, lenders can (and do) set standards that may be stricter than FHA requirements. If you’re having trouble with one FHA approved lender near Frazier Park CA, you might have better luck with 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 Frazier Park 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 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 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 proves good credit history and a solid track record of timely payments will likely be eligible for the mortgage.

How to Find FHA Lenders

Customers get their home loans from FHA-approved lenders in Frazier Park instead of the FHA itself, which only insures the loans. FHA-approved lenders can have various rates and costs, even for the very same loan.

FHA loans are available through numerous sources– from the biggest banks and cooperative credit union to community banks and independent home mortgage loan providers. Costs, services and underwriting requirements vary among loan providers or mortgage brokers, so it’s crucial to look around.

Discover more about how to discover low FHA home loan lender.


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