Question 1

What's the monthly payment on a $750,000 FHA loan in Menlo Park right now?

Accepted Answer

At 5.375% on a $750,000 FHA loan, principal and interest run $4,200 monthly. Add property tax (~$350/month), homeowners insurance (~$150/month), and mortgage insurance (~$500/month). Total PITI+MIP is roughly $5,200.

Question 2

Do I need 10% down to avoid lifetime mortgage insurance on FHA?

Accepted Answer

Yes — 10% down is the threshold. Below 10%, MIP runs for the life of the loan. At 10% or more, MIP cancels after 11 years. On a $777K purchase, 10% down is $77,720. The difference in lifetime MIP cost is roughly $150,000 over 30 years.

Question 3

Can I use a gift from family for my FHA down payment?

Accepted Answer

Yes. FHA allows gift funds for the entire down payment. The lender will ask for a gift letter stating the money is a gift, not a loan. The gift giver doesn't need to be a relative, but the letter must confirm no repayment is expected.

Question 4

Is 740 FICO required for FHA in Menlo Park?

Accepted Answer

No — FHA's floor is 580 FICO. But most lenders in California run 640+ FICO in practice. At 740, you get the best rates and fastest underwriting. Below 640, expect higher rates and tighter scrutiny on income and credit history.

Question 5

How long does FHA closing take in San Mateo County?

Accepted Answer

Typically 21–45 days from application to funding. Brokers often close faster than retail banks because they have multiple lenders. Appraisals take 10–14 days.

FHA loans in Menlo Park: 3.5% down, 740+ FICO, lifetime mortgage insurance