Question 1

What's the monthly payment on a $750K FHA loan at 5.49%?

Accepted Answer

Principal and interest run $4,254/month on a $750K loan at 5.49% APR. Add property taxes, insurance, and HOA—expect $5,200–$5,600 total. That scenario assumes 740 FICO, 96.5% LTV, 30-day lock, primary residence.

Question 2

Do I need 20% down to avoid mortgage insurance on FHA?

Accepted Answer

No. FHA requires only 3.5% down. But mortgage insurance (MIP) runs for the life of the loan if you put down less than 10%. With 10%+ down, MIP cancels after 11 years. At 3.5% down, refinancing is your only escape.

Question 3

Can I get FHA with a 600 FICO score?

Accepted Answer

FHA's floor is 580 FICO, but most lenders in California want 640+. At 600, you'll face limited lender options and may pay 0.25–0.5% higher rate. Call to confirm—some brokers work with 600 FICO if your income and reserves are strong.

Question 4

How much does the upfront mortgage insurance cost?

Accepted Answer

Upfront MIP is 1.75% of the loan amount. On a $750K loan, that's $13,125 rolled into your balance. It's not a separate payment—it increases your loan amount and monthly payment slightly.

Question 5

Is FHA or conventional cheaper in Fountain Valley right now?

Accepted Answer

FHA wins if you're putting down 3.5–10%. Conventional at 96.5% LTV carries 0.75–1.0% annual PMI ($5,625–$7,500/year). FHA's 0.55% annual MIP ($4,125/year) is cheaper. Over 10 years, FHA saves $14K–$33K in insurance costs.

FHA 30-Year Fixed in Fountain Valley: 5.49% Rate, $4,254/Month on $750K