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FHA Loans in Monterey Park
Monterey Park sits in the heart of the San Gabriel Valley, where home prices climb fast but FHA loan limits keep up. The 2024 ceiling here is $1,149,825—well above the national baseline.
Most buyers I work with in Monterey Park use FHA to compete against cash-heavy investors. You can close with 3.5% down if your credit hits 580, which opens doors conventional loans keep locked.
Credit score of 580 unlocks the 3.5% down option. Drop below that and you need 10% down. Debt-to-income can stretch to 43%, sometimes 50% with strong compensating factors.
FHA counts all income sources—W-2, self-employment, rental income—but the property must meet HUD standards. Flips under 90 days won't qualify, and condos need FHA approval.
Not all lenders price FHA the same. I shop your scenario across 200+ wholesale lenders because rate spreads hit half a point on identical borrower profiles.
Some lenders overlay extra restrictions—minimum credit scores above 580, no recent bankruptcies even if FHA allows them. As a broker, I route around those landmines to find approvals others miss.
FHA mortgage insurance never drops off unless you refinance. You pay 1.75% upfront plus 0.55% annually on most loans. That monthly cost surprises buyers who only compare rates.
In Monterey Park, I see buyers stretch for the FHA limit on newer townhomes near Atlantic Boulevard. Older single-family homes sometimes fail appraisals for peeling paint or cracked concrete—fixable issues that delay closings.
Conventional loans drop mortgage insurance once you hit 20% equity. FHA doesn't. But FHA approves borrowers with 580 credit and recent financial hiccups that disqualify them from conventional.
VA loans beat FHA for veterans—no down payment, no mortgage insurance. USDA works in outer LA County zones but not Monterey Park. Conventional makes sense if your credit tops 680 and you have 5% saved.
Monterey Park inventory skews toward condos and townhomes built after 2000. Many complexes lack FHA approval, which kills deals before they start. I verify project status before buyers write offers.
Multiple offer situations are standard. Sellers prefer conventional or cash, so FHA buyers need tight pre-approval letters and appraisal gap coverage. Speed matters—get your bank statements and tax returns ready before you tour homes.
$1,149,825 for a single-family home in 2024. Los Angeles County qualifies as a high-cost area, so the limit exceeds the national baseline of $498,257.
Only if the complex appears on HUD's approved list. About 40% of condos in the area lack approval, which disqualifies them from FHA financing.
1.75% upfront plus 0.55% annually for loans over 95% LTV. On a $700,000 loan, expect $320 monthly on top of principal and interest.
Yes. Family members can gift 100% of the down payment and closing costs. You need a signed gift letter stating no repayment is expected.
580 minimum for 3.5% down. Some lenders require 600+, but we access lenders who approve at 580 with solid income documentation.
30-45 days on average. Appraisal backlogs and repair requirements add time, especially on older properties near Garvey Avenue.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.