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San Dimas sits in the eastern edge of LA County, where home prices typically run lower than coastal zones but higher than Inland Empire markets. FHA loans bridge that gap for buyers who have solid income but limited savings.
First-time buyers dominate FHA activity here. The 3.5% down payment opens doors that conventional loans keep locked. Most San Dimas properties fall comfortably under FHA's LA County loan limit of $1,249,125.
This city attracts families chasing good schools and mountain views without paying Pasadena premiums. FHA financing makes that move possible for borrowers earning $80k-$120k annually who haven't built massive down payment reserves.
You need a 580 credit score for the minimum 3.5% down. Scores between 500-579 require 10% down, but most lenders won't touch that tier. Your debt-to-income ratio can stretch to 50% with compensating factors.
FHA allows gift funds for the entire down payment. Parents, relatives, or employers can contribute. You need two years of steady employment, though job changes in the same field don't disqualify you.
Bankruptcy? You can qualify two years after discharge. Foreclosure requires a three-year waiting period. These timelines beat conventional loans by years, making FHA the comeback loan for borrowers rebuilding credit.
Not all lenders price FHA loans equally. Credit unions often charge lower fees but move slower. Direct lenders close faster but their rates vary wildly based on your profile.
We pull FHA quotes from 200+ wholesale lenders simultaneously. Rate differences of 0.5% between lenders happen daily. On a $650k San Dimas purchase, that's $200 monthly or $72k over the loan life.
Some lenders overlay stricter rules than FHA requires. One might demand 620 credit while another approves at 580. Shopping multiple lenders isn't optional—it's financial malpractice to skip it.
FHA's mortgage insurance never drops off on loans with less than 10% down. You pay 1.75% upfront plus 0.55%-0.85% annually. On a $625k loan, that's $11k at closing and $285-$440 monthly for the loan's life.
Most San Dimas buyers refinance to conventional once they hit 20% equity. That typically happens in 5-7 years with appreciation and principal paydown. Plan your FHA loan as a stepping stone, not a forever home mortgage.
We see denied FHA applications most often for three reasons: undisclosed debt that surfaces during underwriting, property appraisals flagging required repairs, and employment gaps borrowers thought wouldn't matter. Address these upfront.
Conventional loans require 5% down minimum but charge lower mortgage insurance that drops at 20% equity. If you have 640+ credit and stable income, run both scenarios before committing to FHA.
VA loans beat FHA on every metric if you're a veteran. Zero down payment, no mortgage insurance, lower rates. There's no scenario where a qualified veteran should choose FHA over VA benefits.
USDA loans offer zero down for properties in eligible rural zones, but San Dimas doesn't qualify. Conventional with 5% down or FHA with 3.5% down are your primary choices here for low-down-payment financing.
San Dimas offers a mix of tract homes and older properties. FHA appraisers flag peeling paint, damaged roofing, and safety hazards more aggressively than conventional appraisers. Expect sellers to resist repair requests in competitive markets.
HOA properties need FHA approval for condo purchases. Many San Dimas complexes haven't completed this certification. Verify HOA status before writing offers on condos or townhomes, or risk losing your earnest money.
Commute patterns matter for employment verification. Many San Dimas residents work in Orange County or Downtown LA. Lenders question job stability if your commute exceeds 90 minutes, so document your work arrangement clearly.
You need 580 minimum for 3.5% down. Scores of 500-579 require 10% down, but finding a willing lender gets difficult.
Yes, if the HOA has FHA approval. Many complexes lack certification, so verify before making offers.
You pay 1.75% upfront plus 0.55%-0.85% annually. On a $625k loan, expect $11k upfront and $285-$440 monthly.
LA County's limit is $1,249,125 for single-family homes. Most San Dimas properties fall well below this ceiling.
Yes, two years after discharge with re-established credit. That's shorter than conventional's four-year wait.
Yes, appraisers flag safety hazards and significant deterioration. Sellers must complete repairs or offer credit before funding.
FHA Loans in San Dimas