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FHA Loan Solution in Utah & California

An FHA loan lowers your down payment requirement, opening the doors to homeownership.

An FHA home loan is backed by the Federal Housing Administration (FHA) and funded by Guild Mortgage with Scott Buehler as your Senior Mortgage Advisor.

The FHA mortgage program is designed for low-to-moderate-income borrowers who may have lower than average credit scores. FHA is the largest insurer of residential mortgages in the world.

As of 2022, you can borrow up to 96.5% of the value of a home with an FHA loan. You’ll need a credit score of at least 580 to qualify. If your credit score falls between 500 and 579, you can still get an FHA loan (ask me for details and specifics). With FHA loans, your down payment can come from savings, a financial gift from a family member or a grant for down-payment assistance.

Interested to see the 2022 FHA maximum loan amounts are for California and Utah? Please visit the Utah FHA loan limits or California FHA loan limits pages for the full county list.

Features of an FHA Home Loan

  • Finance up to 96.5% of the purchase price.
  • Flexible qualification guidelines.
  • Mortgage insurance for the life of the loan.
  • Maximum loan limits vary by county.
  • Gift funds can be used for down payment & costs.
  • Lower interest rates.
  • Higher up-front closing costs.
  • FHA loans are assumable.
  • Debt-to-income ratio as high as 55%.
  • Allows a no-qualifying "streamline" refinance.

FHA Home Loans - Additional Information

FHA allows 100% gift funds for the down payment and closing costs

The FHA is generous with respect to gifts for down payment. Very few loans programs will allow your entire down payment for a home to come from a gift. The FHA will.

Via the FHA, your down payment can be a gift from an immediate relative (such as parents), an employer, an approved charitable group or a government home buyer program. If you’re using a down payment gift, though, you’ll need to follow the process for gifting and receiving funds.

FHA Non-Credit Qualifying Streamline Refinance

If you already have an FHA mortgage, you have the option of an FHA Non-Credit Qualifying Streamline Refinance. This allows you to refinance without going through the usual steps. There’s no credit check, income verification or home appraisal required. As long as you’re current on your mortgage payments, have no more than one late payment in the last 12 months and no late payments in the last three months, you can be approved.

The Non-Credit Qualifying Streamline Refinance is available in either 15- or 30-year terms, and as a fixed- or adjustable-rate mortgage. Streamline rates are the same as regular FHA refinance rates.

An appraisal is required if you wish to have your closing costs added into the loan. Or you can pay a somewhat higher mortgage rate in exchange for no closing costs, with no appraisal needed.

FHA Cash-out Refinance Mortgage

The FHA cash-out refinance option allows homeowners to pay off their existing mortgage. The amount of money that can be borrowed depends on the amount of equity that’s been built up in the home’s value. To be eligible for an FHA cash-out refinance, borrowers will need at least 20% equity in the property based on a new appraisal. Equity is the difference between the current value of a property and the amount owed on the mortgage.

Decide What’s Best for You

While an FHA loan solution may sound great, it’s not for everybody. It may not help those with credit scores less than 580. On the opposite end, aspiring homeowners who can afford a large down payment may be better off going with a conventional mortgage, as they could save more money in the long run through the lower interest rates and mortgage insurance premium that conventional lenders provide.

As the Federal Housing Administration puts it, an FHA loan “won’t accommodate those who are shopping on the higher end of the price spectrum – nor is it intended to. The FHA loan program was created to support ‘low- and moderate-income home buyers,’ particularly those with limited cash saved for a down payment.”

Disclaimer: Loan terms and limits subject to change. This page is meant for educational purposes and is not a commitment to lend. To qualify for a home loan, please speak to Scott Buehler or apply online.

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