Question 1

What is the FHA loan limit in Merced County?

Accepted Answer

Merced County falls under standard FHA loan limits set annually by HUD. Check current limits before assuming your target price is covered.

Question 2

Can I use FHA to buy a home in Los Banos with bad credit?

Accepted Answer

Yes, down to a 500 credit score with 10% down. Below 580, your lender options narrow significantly — but deals still close.

Question 3

Does FHA allow seller concessions in California?

Accepted Answer

Yes. Sellers can contribute up to 6% of the purchase price toward your closing costs. In a slower market, this is worth negotiating.

Question 4

How long does FHA mortgage insurance last?

Accepted Answer

On most FHA loans with less than 10% down, MIP lasts the full loan term. You remove it by refinancing into a conventional loan.

Question 5

Can farm or agricultural income qualify for FHA?

Accepted Answer

Yes, with proper documentation. Two years of self-employment or ag-industry tax returns typically satisfy FHA income requirements.

Question 6

Is Los Banos in a USDA-eligible zone?

Accepted Answer

Parts of Merced County qualify for USDA loans. It's worth checking — USDA means zero down, which beats FHA's 3.5% requirement.

FHA Loans in Los Banos, CA — Low Down, Real Results