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FHA Loans in Sierra Madre
Sierra Madre's tree-lined streets and historic cottages attract buyers who need lower down payments. FHA loans let you enter this foothill community with just 3.5% down.
Many older Sierra Madre homes need foundation work or updated systems. FHA appraisals flag these issues more strictly than conventional loans.
The tight inventory here means competing against cash buyers and 20% down conventional offers. Sellers scrutinize FHA offers harder in this market.
You need a 580 credit score for the 3.5% down option. Scores between 500-579 require 10% down, though most lenders set their own 580 floor.
Your debt-to-income ratio can reach 50% with compensating factors. FHA allows higher ratios than conventional loans, critical for expensive LA County properties.
Two years of stable employment history works for most borrowers. Recent job changes within the same field typically clear underwriting.
Not every lender handles FHA well in Sierra Madre's older housing stock. Some shy away from properties built before 1978 due to lead paint requirements.
Wholesale lenders price FHA differently based on credit tiers. A broker shops rates across 200+ lenders instead of showing you one bank's rate card.
FHA streamline refinances later require the lender who holds your current loan. Starting with a competitive lender now saves money on future refis.
Sierra Madre's hillside lots sometimes fail FHA soil and drainage standards. I order property reports early to avoid surprises at appraisal.
Mortgage insurance runs higher than conventional PMI and stays for the loan's life on 3.5% down deals. Refinancing out of FHA later makes sense for many borrowers.
Sellers here accept FHA offers that waive repair requests on cosmetic items. Foundation, roof, and electrical issues still need addressing per FHA rules.
The upfront mortgage insurance premium adds 1.75% to your loan amount at closing. This costs about $8,750 on a $500,000 purchase.
Conventional loans with 3% down cost less monthly on strong credit profiles. FHA wins when your score sits between 580-680 or your DTI pushes 45%.
VA loans beat FHA on every metric if you qualify as a veteran. No down payment, no mortgage insurance, and easier property inspections.
Conventional conforming loans let you drop PMI at 80% loan-to-value. FHA mortgage insurance never falls off unless you refinance or put down 10%.
FHA loan limits in Los Angeles County hit $766,550 for single-family homes. Sierra Madre has homes above and below this threshold.
The city's Craftsman bungalows from the 1920s often need electrical panel upgrades. FHA requires these repairs before closing unless the seller handles them.
Properties near Mater Dolorosa Passionist Retreat fire zones may face tighter underwriting. Some lenders add overlays for high fire risk areas.
Sierra Madre's low turnover means fewer comps for appraisers. FHA appraisals sometimes come in low when recent sales are scarce.
Most lenders require 580 for 3.5% down. Scores between 500-579 need 10% down, though few lenders approve below 580.
Yes, but expect stricter property inspections. Foundation, electrical, and roof issues must be addressed before closing.
You pay 1.75% upfront plus 0.55%-0.85% annual premium. Monthly costs vary by down payment and loan amount.
Some do, but cash and conventional offers compete better. Strong pre-approval and flexible repair terms help FHA buyers win.
The limit is $766,550 for single-family homes. Higher-priced properties require jumbo or conventional financing.
Yes, refinancing to conventional once you hit 20% equity removes the insurance. This typically saves $200-400 monthly.
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.