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FHA Loans in Coalinga
Coalinga's housing market offers accessibility for first-time buyers and those rebuilding credit. FHA loans provide a pathway to homeownership with down payments as low as 3.5%, making them particularly valuable in this Fresno County community.
This government-insured program helps buyers enter the market without perfect credit or substantial savings. The flexible qualification standards align well with Coalinga's diverse workforce and family-oriented neighborhoods.
FHA financing removes many traditional barriers to homeownership. Buyers can qualify with credit scores as low as 580 for minimum down payment options, opening doors that conventional financing might keep closed.
FHA loans require a credit score of at least 580 for the 3.5% down payment option. Borrowers with scores between 500-579 may still qualify with 10% down, providing options even after credit challenges.
Your debt-to-income ratio generally should not exceed 43%, though some flexibility exists with compensating factors. Steady employment history of two years demonstrates financial stability to underwriters.
The property must serve as your primary residence and meet FHA property standards. Recent bankruptcy or foreclosure does not automatically disqualify you—waiting periods apply but second chances are built into the program.
Most major banks, credit unions, and mortgage companies in Fresno County offer FHA financing. Rates vary by borrower profile and market conditions, with each lender setting their own overlays beyond basic FHA requirements.
Working with an experienced mortgage broker provides access to multiple FHA lenders simultaneously. This comparison shopping ensures you receive competitive rates and terms suited to your specific financial situation.
Some lenders impose stricter requirements than FHA minimums—called overlays. A broker helps identify lenders whose internal policies align best with your credit profile and down payment capacity.
FHA loans include both upfront and annual mortgage insurance premiums. The upfront premium of 1.75% can be rolled into your loan amount, while annual premiums depend on your loan term and down payment size.
Sellers can contribute up to 6% toward your closing costs with FHA financing—significantly more generous than conventional loans. This provision helps Coalinga buyers preserve cash for moving expenses and home improvements.
Gift funds from family members are acceptable for your down payment and closing costs. Proper documentation of these gifts satisfies FHA requirements while reducing your out-of-pocket expenses at closing.
VA loans offer zero down payment for eligible veterans and service members, eliminating the 3.5% FHA requirement. However, VA eligibility requires military service while FHA remains open to all qualified borrowers.
USDA loans provide another zero-down option for rural properties in eligible areas. Coalinga may have qualifying zones, though income limits apply—FHA imposes no such geographic or income restrictions.
Conventional loans require higher credit scores and larger down payments but eliminate mortgage insurance sooner. FHA suits buyers prioritizing lower entry costs over long-term insurance savings.
Coalinga's property values make FHA loan limits less of a concern for most buyers. The standard FHA limit for Fresno County accommodates the majority of single-family homes available in the local market.
Properties must pass FHA appraisal standards, which include safety and structural integrity requirements. Older Coalinga homes may need minor repairs before closing, but sellers often address these items during negotiations.
The local economy benefits from agricultural, petroleum, and correctional facility employment. FHA underwriters recognize diverse income sources, making stable employment in these sectors perfectly acceptable for qualification.
A minimum score of 580 qualifies you for 3.5% down payment. Scores between 500-579 require 10% down. Higher scores improve your rate and terms.
Just 3.5% down with a 580+ credit score. This amount can include gift funds from family members with proper documentation.
No, FHA loans require the property to be your primary residence. Investment properties need conventional or specialized investor financing programs.
With less than 10% down, mortgage insurance continues for the loan's life. Putting 10% or more down limits insurance to 11 years.
Yes, sellers can contribute up to 6% of the purchase price toward your closing costs. This generous allowance helps preserve your cash reserves.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.