Loading
FHA Loans in Selma
Selma's affordable housing stock makes FHA loans particularly effective here. Most single-family homes fall well below FHA's Fresno County loan limit of $498,257.
First-time buyers dominate Selma's market, and FHA's 3.5% down payment requirement matches what most local buyers can save. This program opens homeownership to families who'd otherwise rent for years.
You need a 580 credit score for 3.5% down. Scores between 500-579 require 10% down, though few lenders approve those.
FHA allows debt-to-income ratios up to 50% with compensating factors. You can qualify earning $4,500 monthly if your total debts stay under $2,250. That includes the new mortgage payment.
You must occupy the home as your primary residence. Investment properties don't qualify. FHA requires two years since bankruptcy discharge and three years after foreclosure.
Every major lender offers FHA loans, but pricing varies significantly. We've seen half-point rate differences between lenders for identical borrower profiles.
Credit unions serving Fresno County often have competitive FHA rates for Selma buyers. Banks typically charge higher fees. Wholesale lenders through brokers usually beat both.
Lender overlays matter more than the base FHA guidelines. Some won't touch 580 credit scores. Others cap DTI at 45% instead of the full 50% FHA allows.
FHA appraisals kill more Selma deals than credit issues. Older homes need functional heating, no peeling paint, and working appliances. Plan $3,000-$5,000 for repairs if buying a fixer.
Mortgage insurance runs 0.85% annually plus 1.75% upfront. On a $250,000 loan, that's $177 monthly. Budget for it. This insurance never cancels unless you refinance later.
Sellers in Selma routinely cover 6% of the price in closing costs. Use that. Ask for rate buydowns or repairs instead of dropping your offer price.
Conventional loans beat FHA if you have 5% down and a 680+ credit score. The mortgage insurance costs less and cancels at 78% loan-to-value.
USDA loans require zero down for Selma properties outside city limits. Income limits apply. If you're under $103,500 household income, USDA saves you the down payment entirely.
VA loans crush both options for eligible veterans. No down payment, no mortgage insurance, better rates. Always use VA benefits if you have them.
Selma's agricultural economy creates income documentation challenges. Farm workers need two years of steady employment history. Seasonal gaps require written explanations from employers.
Property values vary dramatically between east and west Selma. FHA appraisers use comps within one mile. A home near downtown might appraise differently than one near Highway 99.
Lead-based paint inspections add time to pre-1978 homes. Selma has many older properties. Expect 10-14 extra days in escrow for testing and any required remediation.
You need 580 for 3.5% down. Scores from 500-579 require 10% down, but most lenders won't approve below 580 regardless of down payment.
Only if it meets FHA's minimum property standards. No peeling paint, functional utilities, and safe structure required. Consider FHA 203k for major repairs.
Expect 2-3% of the loan amount. On a $250,000 loan, that's $5,000-$7,500. Sellers can contribute up to 6% toward your costs.
Yes, if the home meets FHA standards. Must be built after June 1976, on a permanent foundation, and classified as real property with the county.
Underwriting takes 3-5 days. Total closing averages 30-35 days. Appraisal delays and repair negotiations add the most time in Selma.
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.