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FHA Loans in Temple City
Temple City's tight inventory makes FHA loans a strong entry point for first-time buyers competing against cash offers. The 3.5% down payment requirement means you can secure a home here without draining your savings for a conventional 20% down.
This San Gabriel Valley city attracts buyers who want established neighborhoods without Pasadena's premium. FHA financing lets you compete in a market where starter homes still move quickly and bidding wars favor buyers with solid pre-approval.
You need a 580 credit score for 3.5% down, or 500-579 for 10% down. Most lenders I work with stick to the 580 floor because it streamlines underwriting and rates.
Debt-to-income ratios can stretch to 50% with compensating factors like cash reserves or stable employment history. FHA allows for recent credit events—bankruptcy after two years, foreclosure after three.
Gift funds cover your entire down payment and closing costs. The seller can contribute up to 6% toward your closing costs, which matters in Temple City where every dollar counts.
Not all FHA lenders price the same. Some wholesale lenders I access offer rate discounts for higher credit scores, while others focus on streamlined processing for borrowers with thin credit files.
Los Angeles County FHA loans carry higher upfront mortgage insurance premiums than most states due to loan limits. Shopping across 200+ lenders means finding one that prices aggressively on both rate and MI.
Expect 30-45 day closings with FHA. Appraisals can add time if the property needs minor repairs, which is common in Temple City's older housing stock built in the 1950s and 1960s.
I steer Temple City buyers toward FHA when they have solid income but limited savings. The 3.5% down payment preserves cash for furniture, repairs, and reserves that lenders want to see.
Watch for appraisal issues on fixer properties. FHA requires peeling paint repairs, handrail installations, and working appliances. If you're eyeing a home that needs cosmetic work, budget for repairs before close or negotiate seller credits.
Most of my Temple City FHA buyers refinance to conventional within 3-5 years once they hit 20% equity. This eliminates mortgage insurance permanently, which saves $200-400 monthly on typical loan amounts here.
FHA beats conventional when your credit sits below 680 or you lack 5-10% down payment. Conventional requires mortgage insurance until 20% equity, but FHA's MI stays for the loan life on 3.5% down deals.
VA loans eliminate down payments and MI entirely for eligible veterans. If you qualify for VA in Temple City, take it. USDA doesn't apply here since Temple City doesn't meet rural requirements.
Jumbo loans kick in above $1,149,825 in LA County. If you're shopping in that range with strong credit and 20% down, conventional jumbo often beats FHA on rate and total cost.
Temple City's proximity to quality schools in the Temple City Unified School District drives buyer competition. FHA's lower barrier to entry helps families secure homes in these attendance zones before getting priced out.
The housing stock here skews older, with many properties built 50-70 years ago. FHA appraisers flag deferred maintenance more than conventional appraisers, so plan for potential repair negotiations.
HOA properties exist but aren't dominant in Temple City. When you do encounter them, verify the HOA is FHA-approved before writing an offer. Non-approved HOAs kill FHA deals after you've spent money on inspections.
You need 580 for 3.5% down or 500-579 for 10% down. Most lenders set internal minimums at 580 to keep pricing competitive.
Yes, non-occupant co-borrowers are allowed but expect stricter debt ratio limits. Their income helps you qualify but they increase perceived risk.
Upfront MI is 1.75% of the loan amount, plus annual MI of 0.55-0.85% depending on loan term and down payment. Both costs apply for the loan life on 3.5% down.
Only if the complex is FHA-approved. Check the HUD approval list before making an offer to avoid wasting time on ineligible properties.
Sellers can contribute up to 6% of the purchase price toward your closing costs. This matters when cash is tight after your down payment.
Plan for 30-45 days from application to closing. Appraisal repairs on older homes can add 1-2 weeks if corrections are required.
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.