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FHA Loans in Hanford
Hanford's housing market fits FHA lending perfectly. Most properties fall well below the Kings County FHA loan limit of $498,257 for 2024.
First-time buyers dominate FHA applications here. The 3.5% down payment requirement makes homeownership accessible in a city where renting often costs as much as buying.
Central Valley pricing means your FHA approval stretches further than in coastal markets. A $350,000 loan covers most single-family homes and newer construction in Hanford.
You need a 580 credit score for 3.5% down. Between 500-579 requires 10% down, but most lenders won't touch that range.
Debt-to-income can go to 50% with strong credit. FHA counts all monthly obligations—car payments, student loans, minimum credit card payments.
Two years out from bankruptcy or foreclosure typically qualifies you. Compare that to conventional loans requiring four to seven years.
The mortgage insurance premium is 1.75% upfront plus annual premiums. That's the trade-off for low down payment and flexible credit.
Not all lenders offer the same FHA terms. Some overlay their own restrictions above FHA minimums—requiring 600 credit when FHA allows 580.
We access 200+ wholesale lenders with different appetites. One might approve your 585 credit score while another passes.
Manual underwriting opens doors automated systems close. Self-employed buyers in Hanford benefit most from lenders who still review files by hand.
Rate differences between lenders hit 0.375% on identical scenarios. Shopping one bank costs you thousands over the loan term.
FHA appraisals kill more Hanford deals than credit issues. Older homes near downtown need working HVAC, intact roofs, and chipping paint resolved before closing.
Sellers here resist FHA repair requests more than in buyer's markets. Build a $2,000-$3,000 buffer for appraisal repairs or lost earnest money.
Gift funds work for your entire down payment and closing costs. Parents or relatives can fund the deal if you qualify income-wise.
Refinance out of FHA once you hit 20% equity. You'll drop mortgage insurance and likely improve your rate with conventional financing.
Conventional loans beat FHA after 10-15% down with 680+ credit. You avoid upfront mortgage insurance and can cancel PMI at 20% equity.
VA loans crush FHA for veterans—no down payment, no monthly mortgage insurance. If you qualify for VA, use it.
USDA loans work in Kings County rural areas outside Hanford city limits. Zero down payment but income caps apply.
FHA shines for credit scores under 640 or down payments under 5%. That's where it outperforms every conventional option.
Hanford's older housing stock built before 1978 triggers FHA lead paint disclosures. Sellers must provide known information and buyers get testing rights.
Kings County has minimal condo inventory. FHA condo financing requires HOA approval, which limits options to newer developments.
Agricultural properties common around Hanford don't qualify for FHA. The program covers primary residences only—no farms or income property.
Home prices here rarely push FHA limits. You're competing on credit and debt ratios, not loan amount.
580 gets you 3.5% down. Lower scores to 500 require 10% down, but most lenders won't approve that range.
Standard FHA requires homes move-in ready. FHA 203k rehab loans cover renovations but add complexity and costs.
1.75% upfront (usually rolled into loan) plus 0.55%-0.85% annual premium. Rate depends on loan amount and down payment.
Most do, but prepare for appraisal repair pushback. Older homes often need work to meet FHA property standards.
You need 3.5% down minimum. Seller concessions cover closing costs, and gift funds work for the full down payment.
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.