California Mortgage FHA Home Loan First Time Home Buyer

The Federal Housing Administration

FHA is a governmental agency that guarantees home loans while also providing valuable resources to potential home buyers. FHA does not actually fund mortgage loans, but instead guarantees the loans and allows the various lenders in California to approve mortgage loans which they may have not otherwise approved. Not all California lenders will work with FHA loans.

Home Buying Education

There is an expansive list of agencies within California that are approved through FHA to supply first time home buyers with counseling and financial advice. These agencies can also assist first time home buyers with learning about the various programs available to them through FHA and other agencies.

Just as the population of California is amazingly diverse, so is the listing of approved agencies. Although some agencies only serve English-speaking Californians, other agencies provide counseling to people who speak Spanish, Vietnamese, Cambodian, and Arabic, among other languages. With so many counseling agencies available throughout the state, language barriers shouldn't stop hopeful home buyers from getting adequate counseling before buying a home. A comprehensive list of approved agencies in California can be found on the HUD website.

Financial Assistance

Californians have access to several different financial assistance programs offered through FHA and other helping agencies.

• The California Housing Finance Agency guarantees loans through approved lenders for applicants dependent upon different factors including:

• • The income of the applicants
  • The county which the home will be purchased in
  • The number of people who will reside in the home

Applicants utilizing a CalHFA program must apply through an approved lender.

• The USDA Rural Development Single-Family Housing Team assists Californians with low annual incomes to purchase homes within rural areas of the state. Applicants are eligible depending upon income and location of the home. This program is a great way for first time home buyers in California to get the assistance needed to make homeownership affordable.

• The American Dream Downpayment Initiative provides money to low-income applicants which is applied toward the downpayment of a home. This program is available to home buyers throughout the United States.

There are more financial assistance programs available through FHA for Californians. Check with an FHA representative to find out what programs you may be eligible for.

California Mortgage FHA Home Loan First Time Home Buyer Defined

For most FHA assistance programs, a first time home buyer is defined as someone who has not owned a home within the last three years. This means that if you owned a home five years ago but have rented ever since, you may be eligible for programs designed to help first time home buyers.

Before You Buy

Keep in mind that the FHA does not approve or disprove loans, but the agency does make the decision regarding whether or not to guarantee your loan. Do not assume that a guarantee through FHA will automatically result in a loan approval, because all mortgage loans are still subject to credit approval. To find an HUD-approved mortgage lender, visit the Lender List available on the FHA website. You can search using the name of your preferred lender or by the name of the county within California. You do not want to apply for a mortgage loan through a non-approved lender if you plan on receiving a guarantee or assistance through the FHA.

There is help available to residents who want to buy a home for the first time. California can be a very expensive state to live in, so it is worth it to explore all your options and apply for whatever assistance is available to you.