FHA Loans

Getting to Know FHA Loans

At Cal Tech Mortgage, we connect soon-to-be home buyers with lending options that meet their unique needs. We offer government-backed loans, including loans insured by the Federal Housing Administration (FHA). FHA loans are a unique mortgage option that is insured through a federal government program. They have a wealth of benefits who otherwise may not be able to purchase a home. This type of loan is available to many people who might not otherwise qualify for a conventional mortgage. Our certified mortgage brokers help our clients in Irvine, Lake Forest, Mission Viejo and surrounding California close loans that work for their lives. Contact Cal Tech Mortgage today to schedule a consultation or simply to ask questions as you begin the process.

FHA Loans: The Unconventional Mortgage Option

The FHA is a division of the U.S. Department of Housing and Urban Development (HUD). FHA loans were created in 1934 to help support home buyers purchase homes with loans from private lenders. The FHA itself does not provide the loan, but rather insures it to a certain amount. This gives lenders, like our lending partners, increased security and encourages them to accept more loan applications. We work with several quality lenders who offer competitive FHA loan rates.

FHA loans are a type of nonconventional mortgage; that is, they are insured through a government agency. There are other types of federally insured loans, like VA loans, which are backed by government programs. One of the primary goals of these types of loans is to provide private lenders incentive to approve a greater number of borrowers.

Who Can Get an FHA Loan?

FHA loans were designed to help people who may not have a pristine credit history or who are unable to put down a substantial down payment. Great candidates for FHA loans include people who:

  • Have less-than-perfect credit history or credit score
  • Have filed for bankruptcy or foreclosure in the past (with stipulations)
  • Would benefit from a low down payment (as low as 3.5% in many cases)
  • Can pay a mortgage insurance premium (MIP) in addition to a monthly mortgage payment
  • Want flexible term options or fixed interest rate
  • Are considering refinancing their existing homes
  • Are planning on living in their home as a primary residence
  • Would consider purchasing a single or multi-family home of up to four units, or, in some cases, a condominium

Working with a Qualified Agent

Choosing to work with certified mortgage brokers like those at Cal Tech Mortgage can help the buying process go smoothly. With more than 25 years of combined experience, our brokers know how to match each client with the right type of loan. Our lenders are FHA approved to provide these unique loans. We can help you get pre-approval so you can focus on your search for the perfect new residence. To learn more about FHA loans in Irvine, Lake Forest, Mission Viejo or surrounding areas, contact Cal Tech Mortgage today.