Question 1

What credit score do I need for FHA in King City?

Accepted Answer

You need 580 for 3.5% down or 500-579 for 10% down. Most lenders add overlays requiring 600-620, but we find lenders approving at true minimums.

Question 2

Can I use FHA on a fixer-upper in King City?

Accepted Answer

Standard FHA requires the home to be move-in ready. FHA 203(k) loans let you finance repairs, but add complexity and time to the process.

Question 3

How much is FHA mortgage insurance on a $400K loan?

Accepted Answer

You pay $7,000 upfront (1.75%) plus $275-325 monthly for the loan's life. Exact amount varies by down payment size and loan term.

Question 4

Does King City qualify for USDA zero-down loans?

Accepted Answer

Parts of King City qualify for USDA. Income limits restrict eligibility, and USDA takes longer to close than FHA.

Question 5

Can I get gift funds for my entire FHA down payment?

Accepted Answer

Yes. Family members can gift 100% of down payment and closing costs. You need a signed gift letter stating no repayment required.

Question 6

How does FHA handle multiple income sources in King City?

Accepted Answer

FHA accepts W-2, 1099, and seasonal income with two-year history. Agricultural and gig work qualify if documented consistently across tax returns.

FHA Loans in King City: 3.5% Down, 580 Credit Score Gets You In