Question 1

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

Accepted Answer

At 5.375% with 0.385 points ($2,888 upfront), the principal and interest payment is $4,200 monthly. Add property taxes, insurance, and mortgage insurance — total housing cost runs $5,200-5,400 depending on the home.

Question 2

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

Accepted Answer

No. FHA mortgage insurance (MIP) 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 avoid MIP on FHA — it's built into the program.

Question 3

Can I qualify for FHA with a 650 FICO in Paso Robles?

Accepted Answer

Yes. FHA's minimum is 580 FICO with a valid Certificate of Eligibility or credit report. Most lenders will approve 650+ FICO with standard documentation. Below 620, you'll need compensating factors like reserves or lower debt-to-income.

Question 4

How much do I need to put down for FHA in this price range?

Accepted Answer

3.5% minimum on a $777K purchase is $27,202. You'll also pay 1.75% upfront mortgage insurance ($13,125), which gets rolled into the loan. Total cash needed at closing is down payment plus closing costs — roughly $35-40K.

Question 5

Is FHA cheaper than conventional if I have 10% to put down?

Accepted Answer

No. Conventional at 10% down has PMI that cancels after 11 years. FHA's mortgage insurance never cancels above 90% LTV. Over 30 years, conventional becomes cheaper because the insurance goes away — do the math for your timeline.

FHA 30-Year Fixed Mortgages in Paso Robles: Lower Credit, Smaller Down Payment