Question 1

What credit score do I need for FHA in Arroyo Grande?

Accepted Answer

You need 580 for 3.5% down or 500-579 with 10% down. Most lenders require 580 to avoid added scrutiny.

Question 2

Can I use FHA for a condo in Arroyo Grande?

Accepted Answer

Yes, if the complex appears on HUD's approved list. Check FHA approval before making an offer or risk losing your deposit.

Question 3

How much are FHA closing costs in San Luis Obispo County?

Accepted Answer

Expect 2-5% of the loan amount. Sellers can contribute up to 6% toward your costs, which helps stretch your cash.

Question 4

Does FHA require mortgage insurance in Arroyo Grande?

Accepted Answer

Yes. You pay 1.75% upfront and 0.55-0.85% annually depending on loan size and down payment. MI stays for the loan life with under 10% down.

Question 5

Can self-employed buyers get FHA loans?

Accepted Answer

Absolutely. You need two years of tax returns and steady income trends. Brokers help package self-employed files to meet underwriter expectations.

FHA Loans in Arroyo Grande: Low Down Payments for Central Coast Homebuyers