Key Highlights of FHA Home Loans in California

FHA home loans remain the key foundation to the California housing market enabling borrowers with low down payments, sometimes not the greatest credit and often with high debt to income ratios to achieve home ownership.  Below are some highlights today of FHA home loans in California:

• FHA loan limits go up to $729,750 in much of the state including Los Angeles, Orange County, San Francisco, San Jose and the Bay Area.
• FHA down payment is only 3.5% and can be a gift from a relative
• FHA loan credit scores do not have to be perfect
• FHA loan rates are the lowest of any loan type and at record lows right now
• FHA loan guidelines allow for a 55% debt-to-income ratio where conventional loans stop at 45%
• FHA loan requirements allow for a non-occupant co-borrower