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FHA Loans in Pico Rivera
Pico Rivera sits in the heart of LA County where FHA loans solve the biggest barrier for first-time buyers: saving a down payment. Most borrowers here use FHA to get into single-family homes and condos with just 3.5% down.
The program's 580 minimum credit score works for borrowers rebuilding credit or establishing it for the first time. Many Pico Rivera buyers qualify even after late payments or collection accounts that would kill a conventional approval.
You need 580+ credit for 3.5% down, or 500-579 credit with 10% down. FHA allows debt ratios up to 50% in many cases—higher than conventional limits.
Lenders look at your full two-year work history but accept job gaps if explained. Recent bankruptcy or foreclosure doesn't disqualify you: three years after bankruptcy, three years after foreclosure.
Not all lenders price FHA the same way. Some add overlays requiring 620 credit even though FHA allows 580. Others cap debt ratios at 45% instead of the program maximum.
We shop 200+ wholesale lenders to find ones without pointless overlays. Rate spreads between lenders run 0.25% to 0.50% on identical scenarios—that's $60 to $120 monthly on a $400K loan.
FHA's main cost is mortgage insurance: 1.75% upfront plus 0.55% to 0.85% annually. That annual premium stays for the loan's life on 3.5% down deals. Run the math—refinancing to conventional later saves money once you hit 20% equity.
Sellers sometimes resist FHA offers assuming appraisals will be stricter. That's outdated. FHA appraisals flag legitimate safety issues but rarely kill deals on standard Pico Rivera properties.
VA loans beat FHA if you're eligible—no down payment, no mortgage insurance, lower rates. But most buyers don't qualify for VA. Conventional loans need 5% down minimum but drop mortgage insurance at 20% equity instead of requiring a refinance.
FHA wins when your credit sits between 580-679 or when you can't save more than 3.5% down. The approval flexibility matters more than the insurance cost for most first-time buyers in this market.
Pico Rivera's mix of single-family homes and condos both work for FHA. Condos need FHA approval—either full project approval or single-unit approval on non-approved buildings. We check condo eligibility before you waste time on an offer.
Property age matters less than condition. FHA requires working heat, safe electrical, and stable foundations. Fixer-uppers need FHA 203k rehab loans unless repairs are minor. Most standard homes pass inspection without issue.
Most lenders want 580 minimum for 3.5% down. Some add overlays requiring 620, but we find lenders who follow true FHA guidelines at 580.
1.75% upfront (usually rolled into the loan) plus 0.55%-0.85% annually. The annual premium stays for the loan's life with 3.5% down.
Yes, if the condo project has FHA approval or qualifies for single-unit approval. We verify eligibility before you make an offer.
No, age doesn't matter. Appraisers check safety—roof, foundation, electrical, plumbing. Standard older homes almost always pass.
Yes, after waiting periods. Three years post-bankruptcy discharge, three years after foreclosure completion. Some exceptions allow shorter waits.
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.