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FHA Loans in San Gabriel
San Gabriel sits in the heart of LA County where starter homes and condos still exist under the FHA loan limit of $1,149,825. This program makes sense for first-time buyers and those who can't hit the 20% down payment conventional lenders prefer.
FHA accepts credit scores as low as 580 for 3.5% down, and we've closed deals at 600-620 scores that conventional underwriters rejected. The trade-off is mortgage insurance for the life of the loan on purchases with less than 10% down.
You need a 580 credit score for 3.5% down, or a 500-579 score with 10% down. Debt-to-income can stretch to 50% with strong compensating factors like cash reserves or payment history.
FHA allows two-year gaps after bankruptcy or foreclosure instead of the four to seven years conventional loans require. You can also use gift funds for your entire down payment, which helps San Gabriel buyers whose families want to contribute.
Not all lenders price FHA the same way. Some add overlays requiring 620+ scores even though FHA guidelines allow 580. Others hit you with premium pricing if your DTI exceeds 45%.
We shop 200+ wholesale lenders to find those with true 580 minimums and competitive rates. Portfolio lenders sometimes offer better FHA pricing than big banks, especially on condos that need extra review.
Most San Gabriel buyers don't realize FHA works on properties up to four units if you occupy one. A duplex at $900,000 with rental income can make your DTI calculation work when a single-family home doesn't.
The upfront mortgage insurance premium of 1.75% gets rolled into your loan amount. Annual MIP runs 0.55% to 0.85% depending on loan term and down payment, adding $300-$600 monthly on a $700,000 loan. Refinancing to conventional once you hit 20% equity eliminates MIP.
Conventional loans require 5% down minimum but drop mortgage insurance at 20% equity. FHA requires MIP for the loan's life unless you put 10%+ down, then it drops after 11 years.
If you have 620+ credit and 5% down, run the numbers both ways. Conventional often wins long-term despite higher down payment requirements. But FHA wins immediately if you're at 580-619 credit or need to keep cash reserves.
San Gabriel has many older condos near Valley Boulevard that need FHA condo certification. If the HOA isn't on FHA's approved list, your lender must submit for spot approval, adding 2-3 weeks to closing.
Properties built before 1978 trigger lead paint inspections and disclosures. FHA also requires properties meet minimum property standards, so homes needing significant repairs may not qualify until work is complete. We connect buyers with 203(k) rehab loans when needed.
You need 580 minimum for 3.5% down. Some lenders add overlays requiring 620, but we access lenders who follow true FHA guidelines at 580.
Yes, but the condo complex needs FHA approval or spot approval. We verify status before you make an offer to avoid delays.
1.75% upfront plus 0.55%-0.85% annually. On a $700K loan, expect $300-$600 monthly for annual MIP depending on your down payment and loan term.
LA County's FHA limit is $1,149,825 for single-family homes. Four-unit properties have higher limits if you occupy one unit.
Yes, two years after bankruptcy discharge with re-established credit. Conventional loans typically require four years minimum.
Yes, 100% of your down payment can come from family gift funds. Donors must provide a gift letter and proof of transfer.
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.