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FHA Loans in Reedley
Reedley's housing stock includes many properties under FHA loan limits. The city's mix of older homes and newer construction works well for FHA financing.
First-time buyers make up a significant portion of Reedley's market. FHA loans let you buy with just 3.5% down if your credit score hits 580.
Many Reedley properties need minor repairs. FHA allows you to finance those fixes through a 203(k) renovation loan.
You need a 580 credit score for 3.5% down. Scores between 500-579 require 10% down, though few lenders approve those deals.
Your debt-to-income ratio can go up to 43%, sometimes 50% with compensating factors. FHA allows higher ratios than conventional loans.
Two years removed from bankruptcy works for most lenders. Foreclosure requires three years of clean credit history.
You must occupy the property as your primary residence. Investment properties don't qualify for FHA financing.
Every major lender offers FHA loans, but their overlays differ significantly. Some require 620 credit regardless of FHA's 580 minimum.
Community banks in Fresno County often process FHA loans faster than national lenders. They know which Reedley properties appraise smoothly.
Credit unions typically charge lower fees on FHA loans. Their underwriters take time to review marginal deals instead of auto-declining.
Most Reedley buyers overpay for FHA loans by going directly to one lender. We compare pricing across 200+ wholesale sources daily.
FHA mortgage insurance costs the same regardless of lender. The difference shows up in rates and origination fees, which vary by half a point or more.
Many borrowers refinance out of FHA within three years. Build that into your decision if you expect income growth or credit improvement.
Appraisals kill more Reedley FHA deals than credit issues. Older properties with deferred maintenance trigger repair requirements that spook sellers.
Conventional loans beat FHA if you have 5% down and 680+ credit. The monthly mortgage insurance drops off at 78% loan-to-value.
VA loans crush FHA for eligible veterans. No down payment, no monthly mortgage insurance, and better rates across the board.
USDA loans work for properties outside Reedley's city limits. Zero down payment, but income limits apply and closing takes longer.
Reedley sits in Fresno County, where property taxes average 1.1% of assessed value. Factor that into your debt-to-income calculation.
Many Reedley homes were built before 1978. FHA requires lead-based paint disclosures and inspections for older properties.
Water availability affects rural Reedley properties. FHA appraisers verify well functionality and water quality for homes on private systems.
Agricultural zoning covers parts of Reedley. Some properties with farm outbuildings need extra documentation to satisfy FHA guidelines.
Fresno County's FHA limit is $498,257 for single-family homes in 2024. Rates vary by borrower profile and market conditions.
Yes, through the FHA 203(k) renovation loan. You finance purchase price plus repair costs in one mortgage with 3.5% down.
You pay 1.75% upfront plus 0.55%-0.85% annually based on loan amount and term. This applies statewide, not just Reedley.
Most do, but properties needing repairs sometimes face issues. FHA appraisals require fixes that conventional loans overlook.
Yes, if it's on a permanent foundation and meets HUD standards. The home must be built after June 1976.
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.