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Common Myths About California FHA Loans:


Myth: Takes more time processing

Truth: Takes no more time than a conventional mortgage loan.

Adds no additional or special requirements.

Uses TOTAL Scorecard/AUS approval allowing you to complete a mortgage loan in the amount of time it takes to get the appraisal.

Myth: More paperwork is involved.

Truth: Requires only one additional document signed by the borrower.

Myth: Higher costs are inevitable.


  • Rates are competitive with the best in the industry.

  • Lender insurance programs eliminate shipping and reshipping costs.

  • Streamlined mortgage loan process.


Myth: The borrower can't pay certain mortgage loan costs or fees.


  • FHA eliminated non-allowable closing cost fee schedule.

  • The borrower, or any interested party to the mortgage loan, may pay all reasonable and customary charges.


Myth: FHA is too restrictive.


  • FHA provides guidelines for underwriting; same as industry investors.

  • FHA allows for manual underwriting for all mortgage loan programs; some in the industry will not approve a mortgage loan without an automated approval.

  • Automated Underwriting Systems approval is not required - allows for hands-on, common sense judgments.