Question 1

What's the monthly payment on a $750K FHA loan at today's rate?

Accepted Answer

Principal and interest run $4,200 per month at 5.375%. Add property taxes, insurance, and mortgage insurance (roughly $1,200-$1,400 combined), and your total housing payment is around $5,400-$5,600 monthly.

Question 2

Can I get rid of FHA mortgage insurance?

Accepted Answer

No — at 96.5% LTV (3.5% down), FHA mortgage insurance never cancels. Your only escape is refinancing to conventional later, which requires 20% equity and a higher credit score. Plan to carry MIP for at least 7-10 years.

Question 3

Do I need 620 FICO to qualify for FHA in Newark?

Accepted Answer

No — FHA's floor is 580 FICO. Retail banks often require 620+, but brokers can work with 580. Your rate may be higher at 580 than 740, but you'll qualify.

Question 4

How much down payment do I need for FHA?

Accepted Answer

Minimum 3.5% down. On a $777K purchase, that's $27,202. FHA also allows gifts from family to cover the down payment, which conventional loans restrict more tightly.

Question 5

Will my appraisal come in at the purchase price?

Accepted Answer

Not always. FHA appraisals are strict and often come in 1-3% below the offer price in older neighborhoods. If the appraisal is low, you'll need cash to cover the gap or renegotiate the price.

FHA 30-year fixed in Newark: 5.375% rate, $4,200 monthly P&I on a $750K loan