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FHA Loans in Fowler
Fowler's affordable housing stock makes it a strong FHA market. Many first-time buyers here use FHA financing to purchase homes they'd otherwise need years to save for.
The program's low down payment requirement aligns well with Central Valley income levels. FHA doesn't cap purchase price in Fowler, but most deals here stay well under the Fresno County conforming limit.
Agricultural workers and service industry employees use FHA frequently. The flexible credit standards matter more than the down payment for most Fowler borrowers.
You need 580 credit for 3.5% down, or 500 credit with 10% down. Most lenders won't touch the 500-579 range though—I work with maybe two who will.
Debt-to-income can go to 50% with strong compensating factors. FHA counts all monthly debts: car payments, student loans, minimum credit card payments.
Two-year job history matters, but gaps get approved with explanation. Self-employed borrowers need two years of tax returns showing stable income.
You can't have a foreclosure in the past three years or bankruptcy in the past two. Payment history on current debts needs to be clean for twelve months.
Not all lenders price FHA the same. I've seen rate differences of 0.375% on identical scenarios between wholesale channels.
Some lenders overlay additional requirements beyond FHA minimums. They might require 600 credit instead of 580, or cap DTI at 45% instead of 50%.
Credit unions sometimes offer better FHA rates for members. But their underwriting often moves slower than direct lenders.
Portfolio lenders rarely beat wholesale pricing on FHA. The government insurance means competitive wholesale markets.
FHA mortgage insurance costs more than people expect. You pay 1.75% upfront plus 0.55%-0.85% annually, and it doesn't drop off on most loans originated after 2013.
That monthly MI payment affects your buying power significantly. On a $300,000 loan, you're paying $140-$210 monthly just for insurance.
I run conventional with PMI against FHA on every deal. If your credit is 680+, conventional often costs less monthly even with a smaller down payment.
FHA works best when credit is below 660 or debt ratios are tight. Above that threshold, you're usually paying extra for flexibility you don't need.
VA beats FHA if you're a veteran—no down payment and no mortgage insurance. USDA beats it in eligible Fowler zones with zero down and lower MI costs.
Conventional loans with 3% down compete directly with FHA. You need better credit, but MI drops off when you hit 20% equity.
Jumbo loans don't apply to most Fowler purchases. Conforming conventional becomes the alternative once your credit improves past 700.
Fowler's older housing stock sometimes creates appraisal issues. FHA requires properties to meet minimum standards that some fixer-uppers don't pass.
Peeling paint, missing handrails, or faulty water heaters kill FHA deals. Sellers need to complete repairs before closing or you need to switch loan programs.
Agricultural zoning on some properties complicates FHA approval. The home needs to be on its own parcel without commercial farm operations.
Rural addresses sometimes trigger longer appraisal turnaround times. Budget an extra week compared to Fresno metro closings.
Not a standard FHA loan. The property must meet habitability standards including working systems and safe conditions. Consider FHA 203k renovation loans for properties needing significant repairs.
Yes, but the well needs testing to confirm potability and flow rate. The appraisal won't complete until water quality results come back satisfactory.
FHA follows Fresno County conforming limits, currently $806,500 for single-family homes. Most Fowler purchases stay well below this ceiling.
Technically yes, but lender overlays often require 600-620 minimum. I can find 580 approvals but your rate will be higher and options limited.
USDA offers zero down in eligible areas with lower monthly MI costs. Income limits apply though—many Fowler buyers exceed USDA caps.
Yes, up to 6% of the purchase price. This helps borrowers who have down payment funds but limited cash for closing expenses.
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.