Question 1

What credit score do I need for an FHA loan in Montebello?

Accepted Answer

Most lenders require a minimum 580 credit score for 3.5% down payment FHA loans. Scores between 500-579 may qualify with 10% down, though approval depends on compensating factors.

Question 2

Can I use an FHA loan to buy a rental property in Montebello?

Accepted Answer

No, FHA loans require you to occupy the property as your primary residence. However, you can purchase a multi-unit property and rent out the other units while living in one.

Question 3

How much are FHA closing costs in Montebello?

Accepted Answer

Closing costs typically range 2-5% of the purchase price, including lender fees, title insurance, and prepaid items. Sellers can contribute up to 6% toward these expenses.

Question 4

Does FHA mortgage insurance ever go away?

Accepted Answer

For loans with less than 10% down, FHA mortgage insurance lasts the entire loan term. Refinancing to conventional with 20% equity eliminates this ongoing cost.

Question 5

What's the maximum FHA loan amount in Los Angeles County?

Accepted Answer

The FHA loan limit for single-family homes in Los Angeles County exceeds $700,000. Rates vary by borrower profile and market conditions.

FHA Loans in Montebello: Accessible Homeownership with Low Down Payments