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FHA Loans in Dos Palos
Dos Palos sits in central Merced County, where agricultural employment and modest home prices make FHA loans a natural fit. Most first-time buyers here use FHA because 3.5% down beats saving for the 5-20% conventional programs require.
This isn't Fresno or Modesto pricing. Dos Palos homes stay affordable enough that FHA loan limits rarely become a problem. You're competing with other FHA buyers, so sellers here expect and accept this financing without the stigma you might see in pricier markets.
You need a 580 credit score for the 3.5% down payment. Score below that? You can still qualify with 10% down if your score hits 500. Most Dos Palos approvals I see land in the 620-680 range.
FHA allows debt-to-income ratios up to 43%, sometimes higher with compensating factors. If you're earning $50,000 annually, you can carry roughly $1,790 in total monthly debt including your new mortgage payment. Self-employed borrowers need two years of tax returns showing stable income.
FHA loans come from approved lenders, not directly from the government. As a broker with 200+ wholesale lenders, I'm finding different underwriting speeds and overlays across institutions. Some add credit score requirements above FHA minimums.
Rates vary by borrower profile and market conditions. The lender charging the lowest rate might take 60 days to close while another closes in 21 days at a slightly higher rate. In Dos Palos, where you're often writing offers against other buyers, closing speed matters.
Dos Palos properties often need work. FHA requires homes to meet specific safety and livability standards before you can close. I've seen deals fall apart over chipped paint, missing handrails, and faulty water heaters. Get an inspection early and negotiate repairs before appraisal.
The upfront mortgage insurance premium runs 1.75% of your loan amount, typically rolled into the loan. Annual mortgage insurance costs 0.55% to 0.85% of the balance, paid monthly. On a $300,000 loan, expect $137-$212 monthly for MI on top of principal and interest.
USDA loans offer zero down in Dos Palos since it qualifies as a rural area. But USDA has income limits that disqualify higher earners. FHA has no income ceiling, just debt ratio requirements. If you exceed USDA income caps, FHA becomes your low-down-payment option.
Conventional loans drop mortgage insurance once you hit 20% equity. FHA mortgage insurance stays for the loan's life if you put down less than 10%. Refinancing to conventional later makes sense once your home appreciates and you build equity.
Merced County appraisers know Dos Palos property values. Rural appraisals sometimes pull comps from wide geographic areas when recent sales are sparse. If you're buying on the edge of town, appraisal issues pop up more often than in established neighborhoods near Downtown.
Agricultural workers with seasonal income need two years of steady employment in the same field. Lenders average your income across both years. If last year showed $45,000 and this year projects $52,000, they'll use $48,500 for qualification. Document everything with pay stubs and tax returns.
You need 580 for 3.5% down, or 500 for 10% down. Most approved borrowers in Merced County have scores between 620-680.
Only if it meets FHA safety standards at closing. Major repairs require FHA 203(k) renovation loans, which add complexity and time.
Yes, but USDA has income limits. FHA works for buyers who exceed USDA caps or want faster closing timelines.
Expect 2-5% of purchase price. Sellers can contribute up to 6% toward your costs, more generous than conventional limits.
Only by refinancing to conventional once you have 20% equity. FHA MI stays for loans with less than 10% down.
Yes. FHA is common here and sellers expect it, unlike expensive markets where cash dominates.
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.