Question 1

What's the monthly payment on a $750K FHA loan at 5.375%?

Accepted Answer

Principal and interest run $4,200 per month. Add property taxes, insurance, and mortgage insurance (roughly $310/month at 96.5% LTV). Total housing payment lands around $5,200-$5,400 depending on your property tax rate in San Luis Obispo County.

Question 2

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

Accepted Answer

No. FHA mortgage insurance runs for the life of the loan if you put down less than 10%. With 10% down, MIP cancels after 11 years. There's no way to skip FHA insurance entirely — it's built into the program.

Question 3

Can I refinance out of FHA mortgage insurance later?

Accepted Answer

Yes. Once you build equity to 80% LTV, you can refinance to a conventional loan and drop the insurance. At $777K purchase price, that's roughly $622K loan balance. Refinancing costs $3K-$5K in closing costs, so run the math first.

Question 4

What credit score do I need for FHA in Grover Beach?

Accepted Answer

FHA's minimum is 580 FICO. Most lenders in California overlay 640 FICO. If you're at 620-640, call — some lenders will work with compensating factors like higher down payment or lower debt-to-income ratio.

Question 5

How much down payment do I need for FHA?

Accepted Answer

Minimum 3.5% down. On a $777K purchase, that's $27,202. You can go up to 10% down ($77,720) to reduce mortgage insurance. FHA allows gift funds for the entire down payment if the gift comes from family.

FHA 30-year fixed in Grover Beach: 5.375% on a $750K loan, 3.5% down