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FHA Loans in Paramount
Paramount sits in southeast LA County where FHA loans dominate first-time buyer transactions. Most single-family homes and condos here fall well within FHA loan limits.
The 3.5% down payment requirement makes FHA the entry point for buyers who can't save 20%. Credit scores as low as 580 get approved when other factors align.
You need 580+ credit for 3.5% down. Scores between 500-579 require 10% down, though most lenders won't touch that range.
Debt-to-income ratio can stretch to 50% with strong compensating factors. Two years of steady employment matters more than income source—W-2, self-employed, or commission all work.
FHA allows gift funds for the entire down payment. Sellers can contribute up to 6% toward closing costs, a real advantage in competitive situations.
Every major lender offers FHA, but approval rates and overlays vary wildly. Some credit unions add 620 minimum overlays despite FHA allowing 580.
Portfolio lenders often have better flexibility on non-traditional credit and recent credit events. We shop across 200+ lenders to find who actually approves your specific profile.
FHA appraisals are stricter than conventional. Properties need to meet minimum standards—peeling paint, roof issues, and foundation problems kill deals.
Most Paramount buyers I work with use FHA because they have the income but not the savings. Student loans and car payments eat their debt ratio, so that 50% DTI flexibility matters.
Mortgage insurance is the tradeoff. You pay upfront MIP at closing plus monthly premiums for the loan's life. No way around it unless you refinance later.
I see deals fall apart over property conditions more than credit. Get a pre-inspection before making offers—FHA won't fund if the appraiser flags safety issues.
Conventional loans need better credit and higher down payments but drop PMI once you hit 20% equity. FHA mortgage insurance never falls off.
VA loans beat FHA on every metric if you're a veteran—no down payment, no mortgage insurance, better rates. USDA works for qualified rural areas but Paramount doesn't qualify.
If you have 620+ credit and 5% down, run both FHA and conventional scenarios. Sometimes conventional wins despite the higher down payment.
Paramount's condo market requires special attention. The complex needs FHA approval, and many smaller developments aren't on the approved list.
Older housing stock means property condition comes up frequently. Budget for repairs that sellers won't fix—FHA requires them completed before closing.
Los Angeles County FHA loan limit is $766,550 for single-family homes. That covers virtually everything available in Paramount's price range.
FHA allows 580 minimum for 3.5% down. Most lenders add overlays requiring 600-620, so shop multiple options to find actual approval.
Yes, but the condo complex must be on FHA's approved list. Many smaller Paramount developments aren't approved, limiting your options.
You pay 1.75% upfront plus 0.55%-0.85% annually depending on loan amount and term. This insurance never drops off on FHA loans.
3.5% minimum with 580+ credit. You can use 100% gift funds from family, making this the easiest entry for first-time buyers.
Appraisals add 1-2 weeks compared to conventional. If repairs are required, factor another 2-3 weeks for contractor work and re-inspection.
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.