Use FHA to buy a Home in Santa Clarita California

Mortgage Santa Clarita is the first step to buying a new home.If you are in the market to buy Los Angeles California Home then you might want to look into working with FHA. There are some extra benefits and also some drawbacks to such a loan.

Look in the upper Valley area for great values. Santa Clarita, Valencia and Palmdale offer bargains. But, before you look at open houses Santa Clarita or Valencia open houses, get your loan pre-approved. Getting a Santa Clarita mortgage can take time so be prepared to wait. Home loan rates Santa Clarita are low right now. If you have credit issues, Santa Clarita bad credit home loans are available but expect to pay more.

Briefly, you can borrow up to $725,000, instead of the maximum $417,000 normally allowed by FHA, because Los Angeles County’s average home value allows for loans at this slightly higher Santa Clarita home loan amount to be approved. Furthermore, you are allowed to put down a mere 3 1/2% of the purchase price, so the down payment is far smaller than other types of loans where 20% is required. Look into FHA home loans Santa Clarita for low down payment options.

Finally, however, you will pay a price for only placing such a small down payment on a home, and that is a 1.75% upfront fee will be added to the new loan. So, for example if you want to buy a $200,000 home you will only need to come in with $7,000 as a down payment, but $3,500 will be added to the Valencia mortgage amount unless you want to pay this amount along with all of the other closing costs. At least you have the option and you can also ask the seller to help you pay closing costs as part of the negotiated agreement.

Mortgage Santa Clarita are available as a conventional mortgage with 10-20% down, VA for Vets, FHA for 3.5% down and several specialty mortgages for the self-employed. If you are applying for a loan the best mortgage rates Santa Clarita will come if you have a credit score above 680. The best FHA mortgage rates Santa Clarita would be at a score above 640.