Question 1

What credit score do I need for FHA in South Gate?

Accepted Answer

Minimum 580 for 3.5% down, though most lenders want 600+ for competitive pricing. Below 580, you'll need 10% down and face limited lender options.

Question 2

Can I use FHA for a multifamily property in South Gate?

Accepted Answer

Yes, up to four units, but rental income must meet FHA's self-sufficiency test. Most South Gate duplexes and triplexes fail this calculation, limiting actual opportunities.

Question 3

How much are closing costs on South Gate FHA loans?

Accepted Answer

Expect 2-4% of purchase price including 1.75% upfront mortgage insurance. Sellers can contribute up to 6% toward your costs, which helps in slower markets.

Question 4

Do South Gate properties pass FHA appraisals?

Accepted Answer

Most do, but older homes often need foundation inspections, electrical updates, or water heater replacements. Budget $1,500-5,000 for likely repairs before appraisal.

Question 5

Can I refinance out of FHA mortgage insurance later?

Accepted Answer

Only by refinancing to conventional once you hit 20% equity and 620+ credit. FHA MI stays for the loan life if you put less than 10% down.

Question 6

What's the FHA loan limit in South Gate?

Accepted Answer

$644,000 for LA County in 2024. South Gate median prices sit well below this ceiling, so limits rarely constrain local buyers.

FHA Loans in South Gate: Low Down Payment Access to LA County Homeownership