Many people in California want to buy a home with a 3.5% down FHA loan but do not have quite enough money in savings for the down payment and closing costs. An option for these people is to get a loan against their 401k for additional cash they need for the down payment or closing costs. Especially if the terms of the loan against the 401k are very favorable such as paying no interest and only paying yourself back for the loan. A nice thing about FHA home loan requirements in California is that the payment on the 401k loan will not be counted against you when applying for a FHA loan. This is very important, because many borrowers applying for FHA financing in California cannot afford another debt payment to be counted, or their debt-to-income ratio will be thrown off for qualifying for a FHA loan.
So if you are interested in buying a home in California and you are limited on liquid cash in savings and you have a 401k retirement plan, you might want to look into this option.
Feel free to give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions or would like to be approved for a FHA loan anywhere in California.
Below are some of the latest up-to-date highlights of FHA loans in California:
- FHA loan limits go up to $729,750 in many parts of California including San Francisco, San Jose, Los Angeles and Orange County. Additionally San Diego County goes up close to this FHA loan limit.
- FHA loan rate are still hovering around 60 year lows
- FHA loan requirements allow for a non-occupant co-borrower to help you qualify
- FHA loan down payment is only 3.5% and that can be a gift from a relative
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
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