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FHA Loans in Half Moon Bay
Half Moon Bay's coastal location in San Mateo County presents unique opportunities for first-time buyers using FHA financing. The town's mix of older coastal properties and newer developments means buyers have options across different price points.
FHA loans work particularly well in this market because they require just 3.5% down payment. Many local properties, including those needing minor updates, qualify for FHA financing with appropriate inspections.
FHA loans accept credit scores as low as 580 for the minimum 3.5% down payment. Borrowers with scores between 500-579 can still qualify with 10% down. Your debt-to-income ratio can go up to 43% in most cases, with higher ratios possible with compensating factors.
You must occupy the home as your primary residence and show steady employment history for at least two years. FHA loans allow borrowers who experienced bankruptcy or foreclosure to qualify after waiting periods, making them accessible for those rebuilding credit.
The property must meet FHA minimum property standards, which include structural soundness and safety requirements. Coastal properties in Half Moon Bay need special attention to weather-related wear, but most homes pass inspection with minor repairs.
FHA-approved lenders operate throughout San Mateo County, from large banks to local credit unions. As a broker, we work with multiple FHA lenders simultaneously, which means we can shop your application to find the best terms for your situation.
Rates vary by borrower profile and market conditions. Lenders evaluate your credit score, down payment amount, and debt ratios differently. Some specialize in lower credit scores while others offer better pricing for stronger borrowers.
Working with a broker gives you access to lenders you might not find on your own. We handle the paperwork coordination and know which lenders move fastest, which matters in Half Moon Bay's competitive market.
Many Half Moon Bay buyers don't realize they can use FHA loans for multi-unit properties up to four units, as long as they occupy one unit. This strategy works well with the town's duplex inventory and helps offset mortgage costs with rental income.
FHA mortgage insurance costs include both upfront and annual premiums. The upfront premium of 1.75% can be rolled into your loan amount. Annual premiums currently run 0.55% to 0.85% depending on your loan details, paid monthly.
Time your FHA application carefully if you're selling a current home. FHA allows you to have two FHA loans simultaneously in certain circumstances, such as job relocation or family size changes requiring a larger home.
Conventional loans require higher credit scores and larger down payments but eliminate mortgage insurance sooner. If you have 5% down and a 680+ credit score, conventional financing might cost less long-term despite FHA's lower entry barriers.
VA loans beat FHA for eligible veterans with no down payment requirement and no mortgage insurance. USDA loans work for properties in eligible rural areas, though most of Half Moon Bay falls outside USDA boundaries due to its coastal location and proximity to San Francisco.
FHA's advantage shows strongest for buyers with credit scores between 580-680 or those with limited savings for down payment. The program's flexibility with credit history and employment gaps makes it accessible when conventional financing isn't an option.
Half Moon Bay's coastal climate means properties face salt air exposure and moisture concerns. FHA appraisers pay close attention to weatherproofing, foundation condition, and roof integrity. Address visible maintenance issues before your FHA appraisal to avoid delays.
San Mateo County loan limits allow FHA loans up to $1,089,300 for single-family homes. This higher limit reflects the county's elevated housing costs and gives buyers more purchasing power than standard FHA limits elsewhere in California.
The town's agricultural and coastal zones may have special zoning considerations. Your FHA lender will verify the property meets residential use requirements. Properties with agricultural features or on larger lots need careful review to ensure FHA eligibility.
You need a minimum 580 credit score for 3.5% down payment. Scores between 500-579 qualify with 10% down. Lenders may have additional requirements beyond FHA minimums.
Yes, if the condo project is FHA-approved. The condo association must meet FHA requirements including owner-occupancy ratios and financial reserves. We can verify approval status for specific buildings.
FHA charges 1.75% upfront (often financed) plus annual premiums of 0.55% to 0.85% based on loan amount and down payment. These costs are required for the life of most FHA loans.
Most coastal properties qualify if they meet FHA safety and structural standards. The appraiser will check for weather damage, proper drainage, and structural integrity related to coastal exposure.
Standard FHA loans require properties to meet minimum safety standards at purchase. For homes needing repairs, consider FHA 203(k) renovation loans that finance both purchase and improvements together.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.