Question 1

What's the monthly payment on a $750K FHA loan in La Palma right now?

Accepted Answer

At 5.49% on a $750K loan with 3.5% down, principal and interest run $4,254 monthly. Add property tax, insurance, and FHA mortgage insurance (roughly $500–$600 more).

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 (called MIP) stays on the loan for life if your down payment is under 10%. With 10% or more down, MIP cancels after 11 years. At 3.5% down, you carry it forever unless you refinance.

Question 3

Can I get FHA with a 620 FICO score?

Accepted Answer

Yes. FHA's floor is 580 FICO, and most lenders approve at 620+. You'll pay a slightly higher rate than a 740 FICO borrower, but you'll qualify. Expect tighter debt-to-income limits and possibly a larger down payment request at the lower end.

Question 4

How long does FHA closing take in Orange County?

Accepted Answer

Plan for 30–45 days. FHA appraisals take longer than conventional because the appraiser must verify the property meets HUD's safety and livability standards. Everything else—underwriting, title work, final walkthrough—runs on a standard timeline.

Question 5

Can I use a gift from family for the FHA down payment?

Accepted Answer

Yes. FHA allows gift funds for the entire down payment and closing costs. The gift-giver must sign a letter stating it's a gift, not a loan. No repayment is expected.

FHA 30-year fixed in La Palma: 5.49% with 3.5% down on homes up to $1.25M