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LA County placed LAUSD under heightened fiscal oversight this month, signaling ongoing education challenges in the region. A typical $777,202 purchase in Commerce runs $4,437 monthly on principal and interest at 5.875%.
Commerce sits in a high-cost FHA area where the 2026 limit reaches $1,249,125. Buyers with modest savings can move forward with just 3.5% down and a 740 FICO.
5.875%
Interest Rate
$4,437
Monthly P&I
580
Minimum FICO
3.5%
Minimum Down
$1,249,125
FHA Limit 2026
30 days
Lock Period
FHA Loans in Commerce
FHA requires a minimum 580 FICO, but this rate locks at 740 FICO and 96.5% LTV. Your down payment starts at 3.5% of the purchase price, leaving more cash for closing costs.
Los Angeles County's median household income of $87,760 supports purchases in the $400,000 to $500,000 range comfortably. Higher earners can stretch further with solid debt ratios.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Commerce.
LA County placed LAUSD under heightened fiscal oversight this month, signaling ongoing education challenges in the region. A typical $777,202 purchase in Commerce runs $4,437 monthly on principal and interest at 5.875%.
Commerce sits in a high-cost FHA area where the 2026 limit reaches $1,249,125. Buyers with modest savings can move forward with just 3.5% down and a 740 FICO.
FHA requires a minimum 580 FICO, but this rate locks at 740 FICO and 96.5% LTV. Your down payment starts at 3.5% of the purchase price, leaving more cash for closing costs.
California lenders compete hard on FHA pricing because the government guarantee removes credit risk. Brokers can shop multiple lenders to find the tightest rate and fastest close.
FHA closings typically take 30 to 45 days in California. Lenders require full documentation of income, assets, and employment history. The appraisal must meet FHA property standards.
FHA makes sense in Commerce when you have limited savings but solid income. The 3.5% down and lower FICO floor open doors that conventional loans close.
Above $1,249,125, you'd need jumbo financing with tighter underwriting and a higher rate. FHA's government backing keeps costs down for purchases under the limit.
Conventional loans require 5% down minimum and carry PMI until you hit 78% LTV. FHA's 3.5% down and lifetime mortgage insurance cost less upfront for buyers with limited savings.
The tradeoff: conventional PMI cancels automatically, while FHA MIP stays for the life of the loan if you put down less than 10%. For a 30-year hold, that's meaningful money.
LA County estimates roughly 2,495 jobs at risk from the Paramount-Skydance merger, concentrated in specific sectors. Buyers in Commerce should consider income stability when stretching to the FHA limit.
The school district's fiscal oversight adds uncertainty for families. Renters considering purchase should factor in potential property tax impacts if the district restructures.
Principal and interest run $4,437 monthly at 5.875% on a $750,000 loan. Add property taxes, insurance, and mortgage insurance to get your full payment. The upfront MIP is 1.75% of the loan amount.
No. FHA accepts 580 FICO minimum, though this rate locks at 740 FICO. Lenders look at your full profile — income, debt, and payment history matter as much as the score.
No. FHA's minimum is 3.5% down. That's the lowest threshold available in California. Conventional loans require 5% minimum, so FHA's floor is genuinely lower.
Yes, but only if you put down 10% or more. Then MIP cancels after 11 years. Below 10% down, the insurance stays for the life of the loan — refinancing is the only escape.
The 2026 FHA limit in Commerce is $1,249,125. Above that, you'd need jumbo financing, which requires 20% down and a higher rate. Commerce qualifies as a high-cost area.