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FHA Loans in Millbrae
Millbrae sits in the heart of San Mateo County, where proximity to SFO and Peninsula employers drives consistent housing demand. FHA loans offer a pathway into this competitive market with as little as 3.5% down.
Government-insured FHA financing helps first-time buyers and those rebuilding credit compete for Millbrae's single-family homes and condos. The program's flexible credit standards open doors that conventional loans might keep closed.
Borrowers can purchase up to the FHA loan limit while benefiting from seller-paid closing cost assistance. This becomes particularly valuable in a county where every dollar of saved capital matters.
FHA loans require a minimum credit score of 580 for the 3.5% down payment option. Borrowers with scores between 500-579 can still qualify but need 10% down.
Your debt-to-income ratio can reach 43% in most cases, sometimes higher with compensating factors like cash reserves or stable employment history. Two years of steady income helps strengthen your application.
The property must meet FHA appraisal standards and serve as your primary residence. Condos need FHA approval, though many Millbrae complexes already carry this designation.
Banks, credit unions, and mortgage brokers all offer FHA loans, but their overlays vary significantly. Some lenders add restrictions beyond FHA's baseline requirements, limiting who they'll approve.
Rates vary by borrower profile and market conditions. Comparing multiple lenders becomes essential since pricing can differ by half a percent or more for identical scenarios.
Brokers access wholesale channels that retail banks cannot, often resulting in lower rates and fees. They also know which lenders approve specific property types or borrower situations that others decline.
FHA's mortgage insurance premium structure includes both upfront and annual components. The upfront premium of 1.75% gets financed into your loan, while annual premiums depend on your down payment and loan term.
Buyers often overlook FHA's assumability feature. If you sell later, your buyer can take over your existing FHA loan with its locked rate—a powerful advantage if rates have climbed.
San Mateo County properties sometimes hit FHA loan limits quickly. Working with a broker who understands how to structure purchases near these caps prevents last-minute surprises.
Conventional loans require higher credit scores and larger down payments but eliminate mortgage insurance sooner. Borrowers with 5-10% down and 680+ credit scores should compare both options.
VA loans beat FHA for eligible veterans and service members with zero down payment and no mortgage insurance. USDA loans work for those purchasing in qualified rural areas, though Millbrae doesn't qualify.
Jumbo loans become necessary when purchase prices exceed FHA limits. These require stronger financial profiles but may offer competitive rates for well-qualified borrowers in higher price ranges.
Millbrae's proximity to SFO means some properties fall under airport noise zones. FHA appraisers evaluate noise levels, which can affect eligibility for homes near flight paths.
The city's mix of older homes and newer developments requires careful attention during FHA appraisals. Properties need to meet safety and habitability standards, with issues like peeling paint or faulty railings flagged for repair.
Condo buyers should verify FHA approval status before writing offers. Many Millbrae buildings qualify, but checking upfront prevents wasted time and inspection costs on ineligible properties.
Property taxes and HOA fees in San Mateo County factor into debt-to-income calculations. Higher monthly housing costs mean you might qualify for less than expected based solely on the purchase price.
You need a minimum 580 credit score for 3.5% down. Scores between 500-579 require 10% down. Some lenders set higher minimums, so working with a broker helps find approvals.
Yes, if the condo complex has FHA approval. Many Millbrae buildings qualify, but verify status before making an offer to avoid surprises during underwriting.
FHA loan limits adjust annually and vary by county. San Mateo County typically has higher limits than baseline amounts due to local housing costs. Current limits apply to your purchase.
Yes, FHA requires both upfront mortgage insurance of 1.75% and annual premiums. For loans over 90% LTV, annual premiums continue for the loan's life unless you refinance.
Sellers can contribute up to 6% of the purchase price toward your closing costs and prepaid items. This seller concession helps reduce cash needed at closing significantly.
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.