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Long Beach's coastal location makes homeownership expensive. FHA loans bridge that gap with 3.5% down payments on properties up to $1,249,125.
Most Long Beach buyers we work with use FHA for condos near the waterfront or single-family homes in North Long Beach. The program works well when you have limited cash but steady income.
FHA mortgage insurance adds cost but opens doors. You're competing with cash buyers in this market, so getting pre-approved fast matters more than perfect credit.
FHA Loans in Long Beach
You need 580 credit for 3.5% down. Drop to 500 credit and you'll need 10% down instead.
Debt-to-income ratio can hit 50% with strong compensating factors. FHA accepts recent credit events—bankruptcy after two years, foreclosure after three.
Long Beach prices push many buyers to the FHA limit. Your loan can't exceed $1,249,125 in Los Angeles County, which covers most single-family homes outside the peninsula.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Long Beach.
Long Beach's coastal location makes homeownership expensive. FHA loans bridge that gap with 3.5% down payments on properties up to $1,249,125.
Most Long Beach buyers we work with use FHA for condos near the waterfront or single-family homes in North Long Beach. The program works well when you have limited cash but steady income.
FHA mortgage insurance adds cost but opens doors. You're competing with cash buyers in this market, so getting pre-approved fast matters more than perfect credit.
Not all lenders approve Long Beach condos. We see files get kicked back because the building isn't FHA-approved or the HOA has delinquency issues.
Portfolio lenders move faster on multi-unit properties. If you're buying a duplex in Bixby Knolls, they'll close in 21 days versus 35 with retail banks.
Wholesale lenders give us rate flexibility you won't find at Chase or Wells Fargo. We're locking 0.25% to 0.5% better on identical profiles.
Long Beach FHA deals die on appraisals more than credit. Older homes near the coast need handrails, peeling paint fixed, and foundation cracks addressed before closing.
We order inspections early to catch FHA red flags. A $500 repair estimate turns into a $3,000 problem if the appraiser calls it out first.
Sellers in East Long Beach resist FHA offers because they expect repair requests. We write offers with appraisal gap coverage to make you competitive.
VA loans beat FHA if you're military—no down payment, no mortgage insurance. But most Long Beach buyers don't qualify for VA benefits.
Conventional loans cost less monthly once you hit 680 credit and 5% down. Below that threshold, FHA wins on approval odds and upfront cash.
USDA doesn't work in Long Beach. The entire city fails income and location requirements for rural housing programs.
Long Beach's condo market is FHA-friendly but document-heavy. Expect 15 extra days for condo certification if the building isn't pre-approved.
Flood zones affect properties near the Los Angeles River and Alamitos Bay. FHA requires flood insurance, adding $800 to $2,000 annually in those areas.
Multi-unit properties work well with FHA here. You can buy a fourplex in Central Long Beach, live in one unit, and use projected rent to qualify.
You need 580 credit for 3.5% down. Scores between 500-579 require 10% down, but few lenders accept below 580 in this market.
Yes, but the building must be FHA-approved. We verify approval status before you make an offer to avoid wasted time.
You pay 1.75% upfront and 0.55% to 0.85% annually based on loan amount and down payment. It adds $400-$700 monthly on a $700,000 loan.
$1,249,125 for single-family homes. That covers most properties except luxury homes on the peninsula or Naples Island.
Yes, but you'll compete better with appraisal gap coverage. Sellers worry about repair requirements, so address that concern upfront.
Only if repairs are minor. Major issues require FHA 203(k) renovation loans, which take longer and cost more to originate.