Question 1

What's the FHA loan limit in Santa Monica?

Accepted Answer

The 2024 LA County limit is $1,149,825 for single-family homes. Most Santa Monica houses exceed this, making FHA better suited for condos in the area.

Question 2

Can I use FHA for a Santa Monica condo?

Accepted Answer

Yes, if the building appears on the FHA-approved condo list or qualifies for spot approval. Many Santa Monica buildings don't meet owner-occupancy requirements, limiting options.

Question 3

How does FHA mortgage insurance work?

Accepted Answer

You pay 1.75% upfront plus 0.55-0.85% annually for the loan's life on most purchases. This insurance stays until you refinance or sell, unlike conventional PMI that drops off.

Question 4

Do Santa Monica sellers accept FHA offers?

Accepted Answer

They accept them but prefer conventional financing. Strengthen FHA offers with larger earnest deposits and minimal contingencies to compete effectively.

Question 5

What credit score do I need for FHA in Santa Monica?

Accepted Answer

Minimum 580 for 3.5% down or 500-579 with 10% down. Most lenders add overlays requiring 600+, but we access lenders who follow actual FHA minimums.

Question 6

Can self-employed borrowers get FHA loans here?

Accepted Answer

Yes, with two years of tax returns showing consistent income. FHA accepts the same self-employment documentation as conventional loans.

FHA Loans in Santa Monica: Low Down Payment Access to LA's Coastal Market