For loan amounts below $417K, at the moment, there are 95% FNMA loans available with a mid credit score of 700+ This can change at any time.
As far as I’m concerned, FHA loans are like assigned risk auto insurance. If you are willing to pay the price, they will deal with you.
They represent more risk and will cost you much more than if you have a larger down payment.
If the loan amount is $417K-$546K in San Diego County you will need at least 15% down for FNMA
or
3.5% down for FHA loans up to $546K in San Diego County..
These are the guidelines for FNMA or FHA to buy the loans. I don’t know of lenders that make exceptions the way people seem to think.
Lenders/banks dont make money lending their money for 30 years on fixed mortgagges. They MUST meet the guidelines to be sold to FHA or FNMA. Then they are bundled into MBS.
Rates can be higher at banks, and programs or knowledge of the bank employee can be limited, the same applies to mortgage brokers.
You should find someone to work with regarding a loan. You need to KNOW that you qualify for a loan before you even start thinking about buying a house, not just assuming that you qualify.
Some of the guidelines are crazy. LOTS of people don’t qualify, but think that they do.
I doubt that the chances will increase to lend to really risky borrowers again for a very long time; that’s what got the world into this mess.
The current guidelines already allow for people that probably shouldn’t be buying homes to buy them. Not as silly as a couple of years ago, but still pretty silly. …HLS
