An FHA loan is a mortgage insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP). The insurance reduces the lender's risk exposure so they are able to make the loans at lower rates. Until recently lower maximum loan limits for FHA loans prevented FHA loans from being practical for most areas in California, but in 2011 maximum loan limits for FHA loans were reset, allowing for FHA loans up to $625,500 in higher cost areas including most of the San Francisco Bay Area.
 

FHA loan programs are particularly suited to borrowers with less available cash for down  payment for purchase or lower equity in their homes for refinances. The rates on FHA loans are generally market rates, while loan to value guidelines are higher than for conventional mortgages.  

Some of the Benefits of FHA Mortgages:  

• Only a 3.5% Down Payment Required. 

• Up to 96.5% for Purchase Loans.   

• Lower Monthly Mortgage Insurance Premiums Than Conforming Mortgages.

• Non-Occupant Co-Borrowers Qualify With Blended Debt-to-Income Ratios. 

• More Flexible Underwriting Criteria Than Conventional Loans. 

• FHA Limits the Amount Lenders Can Charge for Some Closing Costs.

As a division of Pinnacle Capital, Apex Mortgage is a fully authorized FHA lender with a "Full Eagle" designation form the Department of Housing and Urban Development.  Government loans including FHA and VA mortgeges are our speciality.  We know exactly how to navigate thechallenges borrowers face when obtaining an FHA loan so that your purchase always closes on time and your refinance doesn't take 90 days.  As with all our loan programs, our pricing and service are as good as you'll find anywhere.  If you're considering FHA financing for your pruchase or refinance, give us a call today. Or if you prefer, REQUEST A QUOTE online, and will get back to you as soon as possible.