Residents in California who want to buy a family home may be eligible to apply for one off California FHA home loans. Income is one of the main criteria used to decide if the applicant is eligible and also how much they can afford to borrow. As each county in California is responsible for setting their own income levels applicants should check with the appropriate authorities what that level is before they start the application process.

Credit scoring is an important element of the process and requires full disclosure of all your financial income and outgoings over the previous 12-24 months. Your credit score is calculated using the FICO scheme and should be between 580 and 620 if you are to be considered eligible for an FHA home loan. You may find that many of the larger mortgage lenders require a score over 740, which can make it difficult to find reputable lenders if your score is lower.

Applicants need to supply details of their income for the two years prior to their application. They will also have to provide detailed accounts of all their income and debt payments. Their FHA loan application can be turned down if there are late payments or defaults in their financial history for the previous year.

Your source of income does not necessarily have to be from employment. Providing your income meets the level required and is regular and ongoing, for example a pension or trust fund, you may still be eligible for an FHA loan. You should always discuss your eligibility with a certified loan adviser before starting the application process.

The rules on loans in the California area state that the value of the property must not be more than the income level set by the county. Nor should the monthly mortgage costs be more than 30 percent of the borrowers gross income. Borrowers should seek advice from their loan officer on the income levels which apply in their geographical area.

Anyone with a regular income that can meet the criteria for a home loan should have no problem getting one. Even if they have previously been declared bankrupt, they can apply two years after they have cleared all their debts. Providing the borrower meets the criteria they can apply.

The loan officer will contact the applicant once they have completed and submitted the application form online. The form requires the applicant to provide their financial history and is easy to complete. Once the loan officer has reviewed the application they will contact lenders to obtain suitable loan offers and work with the applicant to identify the best option for them.

Your California FHA home loans officer will ensure that you are provided with details of how much you can borrow repayment terms and any other expenses incurred during your application process. He or she will liaise with the underwriter. The underwriter is then responsible for reviewing the loan and issuing the closing.

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