Question 1

What's the monthly payment on a $750K FHA loan in Walnut Creek right now?

Accepted Answer

At 5.375% with 0.385 discount points ($2,888 upfront), principal and interest run $4,200 monthly on a $750K loan. Add property tax, insurance, and MIP — total housing payment is roughly $5,200-5,400 depending on your home value and insurance rates.

Question 2

Do I need 20% down to avoid mortgage insurance on FHA?

Accepted Answer

No. FHA allows 3.5% down with no rate penalty. Mortgage insurance (MIP) runs for the life of the loan at your LTV. Conventional requires 20% down to skip PMI entirely. FHA's lower down payment is the tradeoff for lifetime insurance.

Question 3

Can I get FHA with a 600 FICO score?

Accepted Answer

HUD allows 580 FICO, but California lenders typically require 640+ for approval. A 600 score will face denials or require manual underwriting and a co-signer.

Question 4

How long does FHA closing take in Walnut Creek?

Accepted Answer

Broker-based FHA closes in 30-45 days. Retail banks run 45-60 days. Appraisal takes 7-10 days, underwriting 3-5 days. The rest is title, final walkthrough, and funding. Weekends and holidays add time.

Question 5

Will FHA mortgage insurance ever go away?

Accepted Answer

At 96.5% LTV, no — MIP runs for the life of the loan. If you refinance to conventional later (when you hit 80% LTV through paydown or appreciation), you can drop it. Refinancing costs $3K-5K in fees, so it's only worth it after 5-7 years of payments.

FHA 30-year fixed in Walnut Creek: 5.375% rate, 3.5% down, no 20% requirement