FHA, 203b, 203k, and Streamline Refinance Mortgages & Home Loans
Central Coast Lending is a leading broker of FHA mortgage loans, including the FHA 203b, FHA 203k, and FHA streamline refinance on the California Central Coast. Our expert team of loan officers make the process of mortgage finance (or refinance) easy and understandable. With rates at today’s record lows, you can save thousands off your monthly bill.
We guarantee straightforward, honest advice. Contact us for a friendly and confidential discussion about your finances:
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FHA Loan Overview
The National Housing Act of 1934 created the Federal Housing Administration (FHA) to help first-time buyers and lower income Americans purchase a home.
Today, the US Department of Housing and Urban Development (HUD) insures FHA loans. The loan provides low down payment options to prospective buyers that would marginally qualify under industry standard loans and has proven popular with first-time home owners.
For more information, go to www.hud.gov.
UPDATE: The FHA has announced that loans originated after April 1, 2013 will have life of loan mortgage insurance. Under the previous guidelines, the mortgage insurance stops automatically when the loan reaches 78% loan-to-value. The mortgage insurance has a five-year minimum, but the equity can be gained by advance payments, property appreciation, or both.
203(b) Fixed Rate Mortgage Loan Program
The most popular FHA loan program is the 203(b) fixed rate mortgage loan:
- Down payment as low as 3.5 percent
- Mortgage insurance paid primarily by borrowers making a down payment of less than 20 percent
- 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency
- Loan terms include fixed (15 or 30 years) or adjustable rate options
- Non-occupant co-borrower eligible
203(k) Mortgage Loan Program
The 203(k) mortgage loan program allows qualified borrowers to purchase or refinance a home that needs cosmetic repairs or upgrades with as little as 2.3 percent down. Borrowers can get up to $35,000 in home rehabilitation including:
- Roof, gutter and downspouts replacement and repair
- Heating, ventilation, plumbing, electrical, septic replacement and repair
- Painting, flooring and weatherization
- Purchase and installation of appliances
FHA Streamline Refinance
With a solid credit history and a record of consistent payments, holders of a FHA loan are eligible for the FHA Streamline process. FHA Streamline refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage, and are often easier than a typical refinance. Here, the client only needs to show the following to refinance the loan:
- Credit Report
- Loan Application
To qualify for the old mortgage insurance premiums associated with FHA Streamline (0.01% upfront and 0.55% monthly), you must have a FHA home loan older than May 31, 2009. Otherwise, the FHA Streamline loan will adhear to the new MI guidelines (1.75% upfront and 1.25% monthly). You must also meet the following requirements to be eligible for a FHA Streamline:
- The mortgage that you want to refinance must be an FHA-insured loan
- The mortgage payment must decrease your loan amount by a minimum of 5%
- You must have made at least 6 payments on your current FHA loan before you can refinance with FHA streamline.
- You must be current (i.e., not delinquent) on your mortgage payments
- The primary reason why you want to refinance your FHA loan must be to lower your monthly principal and interest payment
- You cannot tap your equity (i.e., take out cash) if you use the streamline process, except for minor adjustments at closing that are not to exceed $500
For more refinance options, click HERE
We broker FHA, 203b, 203k, and Streamline Refinance Mortgages and home loans for the Central Coast and through the entire state of California. Among others, we supply these loans for:
San Luis Obispo County:
Arroyo Grande, Atascadero, Avila Beach, Cambria, Cayucos, Creston, Grover Beach, Los Osos, Morro Bay, Nipomo, Oceano, Paso Robles, Pismo Beach, San Luis Obispo, San Miguel, San Simeon, Santa Margarita, Shandon, Templeton, and surrounding cities.
Santa Barbara County:
Buellton, Carpinteria, Goleta, Guadalupe, Hollister Ranch, Isla Vista, Lompoc, Los Alamos, Los Olivos, Mission Hills, Montecito, Orcutt, Santa Barbara, Santa Maria, Santa Ynez, Solvang, and surrounding cities.
Bakersfield, Delano, Arvin, California City, McFarland, Ridgecrest, Maricopa, Taft, Oildale, Lamont, Rosamond, Rosedale, Greenfield, Lost Hills, and surrounding cities.
Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad, and surrounding cities.