FHA Loans in Inland Empire tend to be a little more flexible in terms of who is going to get approved and who isn’t. These loans are designed for individuals who are going to be putting a large chunk of their monthly take-home pay toward their mortgage. The credit score required for an FHA loan is far lower than traditional mortgage loans, thus helping more individuals get the financing they require for a new home.
One of the other benefits to an FHA loan is that you don’t need to put a lot of money down on your new home. You can often get into the home with around 3.5 percent down on the home. As long as you have a credit score of around 580 or above, you can get one of these loans. With these particular loans, you are allowed to borrow as much as 56-57 percent of your monthly income on things like mortgages, student loans, credit cards and car loans. A traditional mortgage only allows you to have a debt-to-income ratio of 45 percent, if not less.
Inland Empire FHA Loans
FHA loans in Rancho Cucamonga have two different insurance premiums. An annual premium of 0.45-0.85 percent is added to the monthly payments over the life of the loan. You also have to pay a premium of 1.75 percent of the total loan amount at closing. A real estate agent in Inland Empire can go over everything with you to make sure you have a solid understanding of what to expect in the closing process.