Home buyers in Placentia, CA have quickly found that FHA financing is a great way to purchase a home. FHA only requires 3.5% down payment and also has low fixed mortgage rates.
Why Are Placentia Home Buyers Choosing FHA Financing Over Conventional Financing?
Conventional financing requires a minimum of 10% down. Realistically, if you are looking to buy a house with anything less than 20% down, FHA will most likely be the way to go. Even if you want to go with a Conventional loan at 10% or 15% down, you will still need Private Mortgage Insurance, which is not an easy thing to get in the current lender environment. PMI insures the lender in the case of default. It is required on a Conventional loan with less than a 20% down payment. FHA automatically has Monthly Mortgage Insurance as part of it program, meaning that once you are approved for an FHA loan, there is no secondary approval required for the insurance.
Placentia Home Buyers Can Go $0 Down with VA Financing
Of course, you need to be eligible for a VA loan. But for those that are, $0 down cannot be beat. Also, VA does not have a Monthly Mortgage Insurance, which helps to keep the payment low. VA also offers low 30 year fixed rates.
The First Step a Placentia Home Buyer Should Take
Before looking for a home, the first thing a Placentia home buyer needs to do is talk to a local Orange County Direct Mortgage Lender. It helps to talk to someone who knows and understands FHA and VA financing. Your lender should be able to quickly prepare loan scenarios specific to your situation. The next step is to get prequalified and preapproved for a mortgage. Sellers will not even accept an offer from a buyer who hasn’t been at least prequalified from a Direct Lender.
Placentia Real Estate has a lot to Offer!
The city of Placentia, CA has a lot to offer. While home prices are lower and more affordable than they’ve been in many years, real estate has stabilized. Values have come down to levels that are affordable. Homes are not sitting on the market for very long, as buyers are finding out. Most reasonably priced homes are receiving multiple offers. In order to make sure your offer is “in the running” it is important that all your financing questions be answered.
Authored by Tim Storm, a Placentia, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about a Placentia, CA home loan. 877-786-4243 x 7.
Contact me for your Placentia FHA Mortgage:
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*Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
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