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Cypress sits in northwest Orange County — a dense, competitive market. FHA buyers here face stiff competition from conventional and cash offers.
That said, FHA still works in Cypress. Sellers in slower price brackets accept FHA offers regularly. You just need a clean file and fast execution.
580 (3.5% down)
Min Credit Score
3.5%
Min Down Payment
0.55% (most loans)
Annual MIP
Up to 57%
Max DTI
2 years required
Employment History
FHA Loans in Cypress
FHA requires a 580 credit score with 3.5% down. Drop below 580 and you need 10% down — most lenders won't go below 580 at all.
Debt-to-income limits are flexible. FHA allows up to 57% DTI with strong compensating factors. That helps buyers carrying student loans or car payments.
Local decision guide
Use this guide to connect fha loans eligibility, lender expectations, and local market factors before comparing payment options in Cypress.
Cypress sits in northwest Orange County — a dense, competitive market. FHA buyers here face stiff competition from conventional and cash offers.
That said, FHA still works in Cypress. Sellers in slower price brackets accept FHA offers regularly. You just need a clean file and fast execution.
FHA requires a 580 credit score with 3.5% down. Drop below 580 and you need 10% down — most lenders won't go below 580 at all.
Not every lender prices FHA the same. Retail banks often add overlays — meaning stricter requirements than FHA actually demands.
Wholesale lenders we access frequently approve borrowers that big banks decline. The loan program is identical. The overlays aren't.
FHA's biggest hidden cost is MIP — mortgage insurance premium. It's 0.55% annually on most 30-year loans and doesn't drop off automatically like PMI.
If you put less than 10% down, MIP stays for the life of the loan. That changes the real cost comparison versus conventional. Run both scenarios before you commit.
Conventional loans require 620+ credit and typically 5% down. With strong credit, conventional often beats FHA on monthly cost once you factor in MIP.
VA loans beat FHA for eligible veterans — no down payment, no monthly MIP. If you've served, start there, not here.
Cypress is a built-out suburb. Most available properties are condos, townhomes, or single-family homes in established tracts. FHA condo approval rules apply.
FHA requires condos to be on the approved list. Many Cypress condo complexes qualify, but not all. Confirm condo approval before making an offer.
Orange County is a high-cost area with elevated FHA limits. Check HUD's current limit table — it updates annually and directly affects your max purchase price.
Yes, but the condo complex must be FHA-approved. Search the HUD condo approval database before making any offer on a Cypress condo.
Plan for 3.5% down plus 2-3% in closing costs. Gift funds from family are allowed for the down payment.
Not if you put less than 10% down on a 30-year loan. MIP stays for the life of the loan unless you refinance into a conventional mortgage later.
Many will. FHA appraisal requirements are stricter than conventional, so a clean property and fast pre-approval close most seller concerns.
FHA allows 580 minimum, but most lenders want 600-620. Below 580, expect 10% down and very limited lender options.