My Experience Getting FHA Financing

I closed escrow on a home in Irvine, CA last month, with FHA financing, meaning that I only had to pay a down payment of 3.5%. Escrow opened on November 24, 2009, just before Thanksgiving, and was supposed to close in 30 days, just in time for Christmas --- we were so excited! Unfortunately, with the holidays, and the lender's requirements, we weren't able to close that fast, and what was going to be "the best Christmas gift ever!" ended up being very stressful.

Because we have both filed taxes as independent contractors at some time in the past 2 years, getting an FHA loan was a little complicated. We had to provide documentation for everything -- not once, but 2 or 3 times! It seems like lenders are always losing paperwork, and it was our responsibility to make sure they get what they want asap. Our loan depended on it. We were cutting it close on timing. The seller was upset, threatening to charge us for everyday we were late on our agreed upon closing date.

We realized soon that we were not going to have the underwriter's approval by Christmas, and thought, "well, by New Year's for sure! It can't take much longer than that." Well, it did take longer. About 2 weeks longer. We didn't close until the 2nd week of January. This is not very convenient when you have to arrange and rearrange moving plans. Not to mention a seller who wants to close the deal and get her money. We were starting to think we weren't going to get the loan. The stress was building.

Whether you're buying FHA or Conventional, Lender's are very careful before they give you a loan. The process is stressful. If you have any dings on your credit report, you have to give an explanation for why you have those dings. Or if you have unusual amounts coming in and out of your bank account, you have to be able to explain them to your lender.

Happily I can say that the stress and pressure of buying our home was worth it. We are moved in now, and so happy to be in our home. We still can't believe we did it with just 3.5% down and such a low fixed rate. Not to mention the home buyer tax credit we'll be getting once we file our taxes. The stress of buying a home suddenly seems so long ago.

There are many benefits to buying a home with FHA financing. For instance, it's easier to qualify for an FHA loan than a conventional loan in that FHA lenders are more leniant with your credit score and of course, the required down payment amount of FHA is much less. You should talk to a lender and see if you qualify. Wouldn't it be great to find out you can buy a home!

If you need help finding a lender or finding a home, feel free to call or email me. I'd love to help you. Happy hunting!

Sabina Brown

SabinaBrown@gmail.com

First Team Real Estate San Clemente

TeamSanClemente.com | BeachyAgent.com | CheckOutHomes | FaceBook

949.201.9918

~ Serving San Clemente and South Orange County ~