Question 1

What credit score do I need for an FHA loan in Pismo Beach?

Accepted Answer

Most lenders require 580 minimum for 3.5% down payment. Scores between 500-579 may qualify with 10% down. Rates vary by borrower profile and market conditions.

Question 2

Can I use an FHA loan for a Pismo Beach condo?

Accepted Answer

Yes, if the complex appears on FHA's approved condominium list. Many Pismo Beach condos aren't approved, so verify eligibility before making an offer.

Question 3

How much mortgage insurance do FHA loans require?

Accepted Answer

Upfront mortgage insurance equals 1.75% of the loan amount. Annual premiums range from 0.45% to 1.05% depending on your down payment and loan term.

Question 4

Do coastal Pismo Beach properties qualify for FHA loans?

Accepted Answer

Coastal properties qualify if they meet FHA health and safety standards. Expect scrutiny of foundation stability, moisture issues, and construction quality common in beach areas.

Question 5

Can sellers help with my FHA closing costs in Pismo Beach?

Accepted Answer

Sellers can contribute up to 6% toward your closing costs. This significantly reduces cash needed at closing in California's expensive market.

FHA Loans in Pismo Beach: Affordable Beach Living with Low Down Payments