Question 1

What credit score do I need for FHA in San Luis Obispo?

Accepted Answer

You need 580 for 3.5% down. Scores between 500-579 require 10% down. Some lenders add overlays requiring 600 minimum.

Question 2

Can I use FHA for a Cal Poly area condo?

Accepted Answer

Yes, if the condo complex is FHA-approved. Check approval status before making an offer. Not all complexes maintain FHA certification.

Question 3

How much is FHA mortgage insurance in San Luis Obispo?

Accepted Answer

You pay 1.75% upfront plus annual premiums of 0.55% to 0.85% based on loan amount and down payment. Rates vary by borrower profile and market conditions.

Question 4

Does FHA work for homes needing repairs?

Accepted Answer

Minor repairs required by appraisal must be completed before closing. Major issues may require FHA 203(k) renovation financing instead.

Question 5

Can I refinance out of FHA later?

Accepted Answer

Yes, once you reach 20% equity. Conventional refinancing eliminates lifetime mortgage insurance. Most borrowers benefit after 5-7 years.

FHA Loans in San Luis Obispo: Low Down Payment Options for Central Coast Buyers