Question 1

What's the monthly payment on an FHA loan at $777K in El Cajon?

Accepted Answer

On a $750K FHA loan at 5.375%, principal and interest run $4,200 monthly. Add property taxes, insurance, and mortgage insurance (MIP), and your total payment lands around $5,100-5,300 depending on your property tax rate and insurance costs.

Question 2

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

Accepted Answer

No. FHA allows 3.5% down minimum. Mortgage insurance (MIP) is required above 90% LTV and runs for the life of the loan unless you refinance. With 10%+ down, MIP cancels after 11 years — that's the only escape without refinancing.

Question 3

What credit score do I need for FHA in El Cajon?

Accepted Answer

FHA's floor is 580 FICO. Most lenders prefer 640+, and rates improve significantly above 700. At 740 FICO like this scenario, you get the best pricing. Below 620, expect higher rates or lender overlays that tighten the approval.

Question 4

How long does FHA closing take in San Diego County?

Accepted Answer

Brokers typically close FHA loans in 30-45 days. Retail banks often take 45-60 days. Recent FHA guideline updates require stricter documentation on gifts and income, so expect full underwriting scrutiny. Plan for 45 days as a safe estimate.

Question 5

Can I refinance out of FHA mortgage insurance later?

Accepted Answer

Yes. Once you build equity to 80% LTV or more, you can refinance to conventional and drop the insurance. Many El Cajon buyers refinance after 5-7 years when rates improve or equity builds.

FHA Loans in El Cajon: 3.5% Down, 5.375% Rate, $4,200/Month on $777K