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FHA Loans in Palmdale
Palmdale sits in the Antelope Valley where home prices run lower than coastal LA County. FHA loans work well here because the 2024 LA County limit of $644,000 covers most single-family properties.
First-time buyers dominate Palmdale purchases, and FHA's 3.5% down requirement fits that profile. Many borrowers here use FHA to avoid private mortgage insurance structures that eat into monthly budgets on conventional loans.
You need 580 credit for 3.5% down. Drop to 500 credit and you'll put down 10%. Most lenders I work with won't touch sub-580 scores even though FHA technically allows it.
Your debt-to-income ratio can hit 50% with compensating factors like cash reserves or rental history. FHA accepts 31% front-end, 43% back-end as standard, but flexibility exists for strong borrowers.
You must live in the property as your primary residence. No investor purchases. Bankruptcy requires two years seasoning, foreclosure needs three years behind you.
I shop 200+ wholesale lenders and see wide variance in FHA pricing. Rate differences of 0.5% between lenders are common, which costs you $150-200 monthly on a $500K Palmdale home.
Some lenders specialize in credit repair scenarios or recent bankruptcy. Others won't touch anything below 640 credit. Portfolio lenders sometimes overlay stricter rules than FHA minimum guidelines require.
Direct-to-consumer banks often can't match broker pricing because they lack wholesale access. I've beaten bank quotes by $4,000-7,000 in closing costs on identical FHA scenarios.
FHA mortgage insurance premium runs 1.75% upfront plus 0.55%-0.85% annual. On a $500K Palmdale purchase, that's $8,750 upfront and $230-355 monthly. You can't cancel it unless you put 10% down and wait 11 years.
Many Palmdale buyers would qualify conventional with 5% down if they knew to ask. The PMI cancels at 78% loan-to-value, unlike FHA. Run both scenarios before committing.
Appraisals kill deals here when homes need repairs. FHA requires working HVAC, no peeling paint, functional plumbing. Foreclosures and flips in Palmdale often fail FHA inspection standards.
VA loans beat FHA if you're military or veteran. No down payment, no mortgage insurance, better rates. Don't use FHA when VA is available—it's financial malpractice.
Conventional loans at 5% down cost less monthly than FHA once you factor mortgage insurance. The break-even happens around 680 credit score. Below that, FHA wins on rate and approval odds.
USDA loans work in parts of Palmdale if you meet income limits. Zero down payment but income caps at $103,500 for most households. Processing takes longer than FHA.
Palmdale's aerospace employment base means stable incomes but occasional layoffs. Lenders see this history and sometimes require extra reserves. Three months cash cushion helps approval odds.
New construction tracts in west Palmdale appraise clean for FHA. Older homes near 10th Street East need inspection scrutiny. Budget $2,000-5,000 for repairs that appraisers flag.
Commute patterns matter for debt ratios. If you're driving to Burbank or Santa Clarita daily, lenders may question housing cost sustainability at high DTI. Document remote work if applicable.
You need 580 for 3.5% down, though most lenders want 600+. Below 580 requires 10% down and fewer lenders approve it.
Standard FHA requires working systems and no safety hazards. Use FHA 203(k) renovation loans for properties needing repairs.
Upfront MIP is 1.75% of loan amount. Annual MIP runs 0.55%-0.85% depending on down payment and loan term.
Only if the complex is FHA-approved. Many Palmdale HOAs aren't approved, which kills financing options fast.
Only if you put 10% down and wait 11 years. Otherwise it stays for the loan life—refinance to remove it.
LA County FHA limit is $644,000 for single-family homes in 2024. Above that you need a jumbo loan.
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.