Question 1

What down payment do I need for an FHA loan in Clayton?

Accepted Answer

You need just 3.5% down with a credit score of 580 or higher. Borrowers with scores between 500-579 require 10% down. Gift funds from family can cover the entire amount.

Question 2

Can I use an FHA loan for a condo in Clayton?

Accepted Answer

Yes, if the condo complex is FHA-approved. The building must meet specific requirements including adequate reserves and owner-occupancy ratios. Your lender can verify approval status.

Question 3

How does FHA mortgage insurance work?

Accepted Answer

You pay 1.75% upfront (usually financed into the loan) plus annual premiums ranging from 0.45% to 1.05% of your loan balance. Insurance remains for the loan's life with less than 10% down.

Question 4

What credit score do I need for FHA approval?

Accepted Answer

FHA minimum is 580 for 3.5% down, but many lenders prefer 600 or higher. Scores between 500-579 qualify with 10% down. Recent bankruptcy or foreclosure may require waiting periods.

Question 5

Can I buy a fixer-upper with an FHA loan?

Accepted Answer

Standard FHA loans require properties to meet safety and livability standards. For renovation projects, consider FHA 203(k) loans which finance both purchase and repairs in one mortgage.

FHA Loans in Clayton: Accessible Home Financing for Contra Costa County Buyers