The Federal Housing Administration (FHA) loan is a great option for borrowers without a large amount saved for a down payment.
What is it?
The FHA loan has helped grow homeownership rates in large cities and for minorities since it’s inception in 1934. It is designed for low-to-moderate income borrowers. Often this loan program is used by first time homebuyers or those who have not had an opportunity to build their credit or savings for down payment.
While the FHA loan is commonly used by first time homebuyers, it is not strictly for first time buyers and can be used for any home purchase as long as the qualifications are met. It is important to note that this loan is only an option for a primary residence and won’t work for investment properties or second homes, like vacation homes.
Why is it different from other mortgages?
This loan is not funded by FHA but instead is funded by your mortgage lender and insured by Federal Housing Administration (FHA). In order to secure the guarantee of FHA, qualified borrowers are required to purchase mortgage insurance— and premium payments are made to FHA. So your mortgage lender takes on less of a risk since FHA will pay a claim if you default on the mortgage.
Give me all the details.
Gift funds are allowed in conjunction with this loan as long as they are accompanied by a gift letter and donor bank statement.
During the appraisal, all utilities must be turned on. The appraiser will need to inspect the appliances and sump pump.
If the property is vacant for 30+ days then a water test is required.
If you are seriously delinquent on your federal student loans or income taxes you may not qualify for an FHA loan.
You can find more information here.
Being your own boss shouldn’t mean a backbreaking path to homeownership. Self-employed borrowers can relax with Stockton Mortgage’s bank statement program, with alternative documentation options of 12 or 24 months of bank statements.
Our conventional loans can be a fixed rate or adjustable rate mortgage. With a variety of down payment options, the minimum down payment requirement is 3%. There are also options that avoid mortgage insurance.
This loan program helps medical professionals qualify for a home loan, even with student loans and limited savings. Eligible borrowers include currently practicing medical professionals or those who’s employment will start within 90 days of closing.
Fresh Start Loan
Individuals recovering from a credit event should not be without the hope of homeownership. If you’ve had a recent bankruptcy (Chapter 7 or 13), foreclosure, deed-in-lieu, or short sale, ask one of our mortgage bankers about a Fresh Start.
Hobby Farm Home Loan
The Hobby Farm loan is for homes with 5 – 160 acres. Rural areas, non-contiguous parcels permitted. Not eligible for full time Farming operations. This program is good for customers looking for a place to have horses, hunting property, etc.
Home Equity Line of Credit (HELOC)
This alternative to a cash-out refinance allows a borrower to use the equity in their home without refinancing their mortgage.
Investor Cash Flow Loan
With Stockton Mortgage’s Investor Cash Flow Loan, it’s never been easier to break into real estate investing. This program allows you to utilize the future income rental of a property to determine cash flow – meaning that if portfolio growth is a goal, the Cash Flow Loan could make it happen.
Stockton Mortgage offers solutions for people who have an Individual Tax Identification Number (ITIN) who are looking for a mortgage or wish to finance their existing mortgage. With our ITIN Loan Program, we may be able to utilize written verification of employment and bank statement payroll deposits in lieu of paystubs.
A great option for large loan amounts; too large for a conventional loan. Loan amounts up to $3 Million for owner occupied or $2 Million for second home. This program varies by state, please ask your mortgage banker for more information.
Low Down Payment, New Construction Loans
We offer new construction loans for VA, FHA and USDA Loans. These programs are good for customers that can’t find an existing home to purchase.