Question 1

What's the monthly payment on an FHA loan for $750K in Galt?

Accepted Answer

Principal and interest run $4,200 monthly on a $750K loan at 5.375% with 0.385 discount points. Add property taxes, insurance, and mortgage insurance — total PITI typically runs $5,200-$5,600 depending on your home value and location within...

Question 2

Can I get rid of FHA mortgage insurance?

Accepted Answer

No — mortgage insurance on FHA loans above 90% LTV never cancels. Refinancing to conventional is your only escape. With 96.5% LTV here, you're locked in unless you build equity and rates stay favorable for a refi.

Question 3

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

Accepted Answer

No. FHA's minimum is 3.5% down. If you put 10% or more down, mortgage insurance cancels after 11 years. Below 10%, it's lifetime. At 3.5% down, you're paying lifetime MIP — that's the FHA tradeoff.

Question 4

What credit score do I need for FHA in Galt?

Accepted Answer

The FHA minimum is 580 FICO, but most California lenders require 620-640 to avoid overlays. At 740 FICO, you qualify easily and get the best rate available. Below 620, expect tighter scrutiny and possible rate adjustments.

Question 5

How long does FHA closing take in Sacramento County?

Accepted Answer

Expect 30-45 days from application to close. FHA appraisals are stricter than conventional, which adds a week or two. If the property fails FHA standards, repairs delay closing. Most Galt closings hit 35-40 days.

FHA Loans in Galt: Lower Credit, Smaller Down Payment, Higher Rates